Walmart Evolves its Private-Label Food Strategy

Walmart is rebalancing its private brand portfolio, phasing out its exclusive Wild Oats organic food brand along with opening price-point brand Price First while expanding national-brand equivalent Great Value.Wild Oats products first landed in Walmart stores two years ago through a deal with private-equity firm Yucaipa, which bought the Wild Oats brand after the supermarket retailer was acquired by Whole Foods Market. Walmart saw the partnership as a way to quickly bring shoppers lower-priced organic options, but the brand never enjoyed much visibility in the aisles and received only minimal marketing support. It will completely disappear from the mass merchant’s shelves during the next few months.As organic and natural products shift from niche specialty categories firmly to mainstream, Walmart is expanding its own network of organic-food suppliers. The retailer is adding more organic SKUs to its Great Value private label while also expanding its assortment of organic produce as it seeks the best way to sell organic products to shoppers spending more on the category.The Great Value Organic line extension received its official introduction through a dedicated spread in Walmart’s latest circular. (The brand had its debut in Canada late last year.) Spotlighted products included canned vegetables, salad dressings and spices. The packaging clearly marks the items as organic by printing the word in large font at the top of labels while the Great Value brand is downplayed underneath. So far, only a handful of the items are visible online and all direct visitors to stores for purchase.The Great Value behemoth will have to serve both organic-food shoppers and price-sensitive shoppers once Walmart eliminates Price First. First introduced in 2014, the neo-generic dry-grocery and consumables label was designed to compete for shoppers at hard discounters like Aldi; it will be phased out this year, according to reports.

P2PI MEMBERS

JOIN P2PI

You May Also Like

Milo’s Tea to Discuss Emerging Trends & Rising Food Prices at P2PI LIVE

Walmart’s Private-Label Portfolio Gets ‘Bettergoods’