Walmart announced on Tuesday that it is putting a new food label on shelves called Bettergoods — the largest private food brand launched by the retailer in two decades.
The move could help Walmart retain higher-income shoppers who have flocked to the retailer in times of higher inflation by filling Walmart's grocery aisles with 300 new products tailored to vegan, gluten-free dietary choices and adventurous.
Bettergoods has three areas of focus: plant-based goods like $3.44 oat milk ice cream, gourmet foods like brass-cut pasta for $1.97 or jalapeño soup for under $4, and “made-without” foods , as gluten-free products.
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Bettergoods will introduce shoppers to “new and exciting flavors and concepts,” Walmart said has written in a press release. This differentiates the brand from Walmart's existing The Great Value line, which focuses on everyday products and is local the largest private food brand from income.
Walmart differentiates Bettergoods from competing brands by making many items on the brand “completely unique to Walmart,” according to the press release. Competitor Target launched its own Good & Collect food labels in 2019, with a focus on everyday items as opposed to unique ones.
Most Bettergoods items will be under $5, with prices ranging from $2 to $15.
Credit: Walmart
Walmart has a substantial grocery business that contributes over half of or 60%of its overall sales in the US It was largest grocer in the country in revenue last year, ahead of Kroger and Costco.
Increase in inflation may have driven shoppers to Walmart for cheaper groceries — and Bettergoods may be Walmart's way of keeping them with higher-quality, trendy goods.
Scott Morris, senior vice president of private brands, food and consumables for Walmart US, told CNBC that Walmart expects Bettergoods to appeal to those with higher incomes, younger buyers who have started shopping in its stores in recent years.
According to Morris, Walmart began working on the new brand after shoppers said they wanted “elevated culinary, inspirational types of items” and healthier options.
or March report from the US Bureau of Labor Statistics shows that food prices rose year-over-year in several categories, with prices for meat, poultry, fish and eggs rising 0.9% over the year, while prices for fruits and vegetables rose 2 %.
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Walmart closes health care clinics
Walmart too announced Tuesday that it would close another part of its business, Walmart Health.
The retailer is closing all of its U.S. health clinics, 51 locations across the U.S. and shutting down its telehealth service.
Walmart said low profits in the health center space forced it to make the “difficult decision.”
“The challenging reimbursement environment and escalating operating costs create a lack of profitability that makes the care business unsustainable for us at this time,” the company said in a press release.