Walmart is launching a new grocery brand called BetterGoods, featuring more trend- and chef-driven foods priced at less than $5. The move comes as the retailer aims to retain the shoppers it has attracted during a period of high inflation. Walmart is already the largest grocer in the US by revenue, with nearly 60% of its US sales coming from its grocery business in the most recent fiscal year. The company’s large food business has helped drive store and online traffic, particularly as customers have adjusted their spending habits due to inflation.
Despite already being a major player in the grocery market, Walmart is looking to grow its private label business. During the pandemic, some national brands faced shortages, leading customers to try retailers’ own brands. Inflation has also pushed prices higher, prompting more shoppers to opt for store brands, which are often cheaper. Additionally, the rise of low-priced grocery chains like Aldi, Lidl, and Trader Joe’s, as well as the popularity of Costco’s Kirkland brand, has contributed to changing perceptions of store brands.
Other retailers have also revamped their private label strategies, offering more unique and affordable food items to compete with discounters like Aldi and Dollar General. Target, for example, introduced the Good & Gather and Favorite Day brands in 2019, featuring a wide range of products including salad kits, peanut spreads, and ice cream bars. Kroger launched Smart Way, offering low-priced basics like mayonnaise and sliced bread. Walmart’s new brand, BetterGoods, will include items in various categories such as frozen foods, dairy, and snacks priced between under $2 to under $15.
The BetterGoods brand at Walmart will focus on three major areas: items with a culinary flair like creamy corn jalapeño chowder, plant-based options like oat milk non-dairy frozen dessert, and items that exclude certain ingredients such as gluten- and antibiotic-free chicken nuggets. This new private label will complement Walmart’s existing collection of private brands in the grocery department, which includes the popular Great Value brand – the largest private grocery brand in the country. The launch of BetterGoods is part of Walmart’s efforts to continue attracting customers and differentiating itself in the competitive grocery market.
Overall, Walmart’s move to introduce BetterGoods reflects a broader trend in the grocery industry towards offering more diverse and unique private label options. As inflation and changing consumer preferences continue to impact the market, retailers are focusing on providing affordable and innovative products to attract and retain customers. With the launch of BetterGoods, Walmart aims to cater to a new wave of shoppers looking for trend-driven and budget-friendly food options while maintaining its position as a leader in the grocery sector.
