Walmart Launches New Private Label Grocery Brand BetterGoods for Inflation Era Consumers

Walmart is introducing a fresh lineup of groceries under its new private label named BetterGoods. With an intention to preserve the clientele gained amid surging inflation and expanding trendier, gourmet offerings with low costs—pricing starts below $5 per product – Walmart expects the grocery products that it describes as ‘ahead-of-the curve’ will help in retaining customers who have been attracted by lower prices during a period of high inflation.
The new brand’s range spans from frozen foods, dairy and snacks costing between $1-$15 per item, falling under one or more of the following three areas: culinary items like jars with corn-jalapeño chowder; plant-based products such as oat milk non-dairy ice creams; and goods that exclude specific ingredients including gluten-free chicken nuggets without antibiotics.
Walmart, which is already the largest grocer in America by revenue, has seen its grocery business grow to 60% of total sales in fiscal year ending January last year. The company’s large food division helped it drive both online and store traffic during inflation-driven times as consumers tried conserving their discretionary income for essential items while prices rose across the board.
The pandemic has also led customers towards private label brands, with national brand products running low in stores leading to an increase in demand for retailers’ own labels. This trend was further reinforced by higher inflation levels pushing food and housing costs upwards which compelled more shoppers to try store-branded items that are often cheaper than their named competitors’. Moreover, the success of supermarket chains such as Aldi or Lidl has also contributed in changing consumer perceptions towards private labels.
As retailers revamped their approach for creating own brands beyond basic staples like canned peas and generic cereal boxes with a resemblance to Cheerios; Walmart’s BetterGoods will feature unique food items, such as bagged salad kits or frozen veggies. Target’s Good & Gather line launched in 2019 features similar offerings including peanut butter spreads and ice cream bars with creative twists on flavours. Other retailers have introduced new private brands focused primarily on affordability, to compete against discount stores like Aldi or Dollar General; Kroger’s Smart Way brand was launched two years ago featuring low-priced basics such as mayonnaise and sliced bread.