Trader Joe's has their iconic Two-Buck Chuck, chocolate lava cake, and meatballs. Costco's in-store brand, Kirkland Signature, is so beloved that shoppers recently flocked to buy loungewear with its logo.
Now Walmart wants to join the commotion.
On Tuesday, the retail giant launched a line of store-branded groceries, filling shelves with items like hot honey relish, a frozen dessert made with oat milk, strawberry-flavored sparkling water and several deals for customers. buyers who avoid gluten or added sugar.
The line called Bettergoods marks a push by Walmart to build a more loyal base of millennial and Gen Z shoppers. It also seeks to grab some of a market dominated in recent years by companies like Monrovia-based Trader Joe's and Costco. whose store-branded items (think Trader Joe's peanut butter-filled pretzel nuggets and Costco's 3-pound bag of nuts). For less than $10, they've created their own cult following.
Private labels have become more popular in recent years as consumers face rising costs. Supermarket giant Kroger Co. previously announced it plans to add more than 800 private-label products this year.
“Walmart not only wants more young consumers, but also loyal young consumers. Consumers who will stay even when they can go back to buying more expensive brands,” said Sara Lebow, senior analyst at EMarketer, a market research firm.
Most of Walmart's new items will sell for less than $5, with the most expensive items topping out at around $15, according to a statement from the Bentonville, Arkansas-based company.
Lebow said the retailer, whose $98-a-year Walmart+ subscription plan is racing to compete with Amazon's Prime, likely sees the new grocery line – “more upscale-looking options at affordable prices,” he called it – as a step to ensure that Consumers who sign up during times of high inflation or during busy shopping periods, such as holidays, do not cancel service later.
Scott Morris, senior vice president of private brands, food and consumables at Walmart, described the line as “quality, unique, chef-inspired foods at an incredible value,” a nod to the premium consumers place on tasty, high-quality foods. fashion and cost reduction. between stubbornly high inflation.
Lebow, who hosts a retail podcast he made a segment recently at Trader Joe's and other grocers with passionate and loyal customer bases, he said it's difficult to compare a giant like Walmart with a much smaller chain. Costco's success in creating a cult following among “people who are proud of the fact that they buy cheap products” is more like what Walmart probably hopes to achieve, he said.
Lebow recalled recently seeing someone wearing a sweater with the Kirkland brand logo emblazoned across the chest. He called it a clear example of the “high budget” trend on TikTok, the counterpoint to the “quiet luxury” trend, in which many expensive brands have opted in recent years to use logoless branding.
Walmart's new items are divided into three categories: items geared toward food trends, a plant-based options section with eco-friendly packaging, and a group of “Made Without” products for shoppers looking for items without gluten, added sugar or flavors. or artificial coloring. .
Among the items customers can find on shelves now: a container of hot honey relish for about $3, an oat milk dessert for $3.44 a pint and a line of soups served in jars for about $4.
The addition of 300 items will mean less shelf space for other brands fighting for space in stores.
The launch, which was first reported by the Wall Street Journal, This comes as Walmart reduces its investments in other areas, including closing several health clinics it opened in recent years.
A Walmart spokesperson declined to say how many people would lose their jobs, but said the clinics would likely close within two to three months.
Bloomberg News contributed to this report.
