Walmart is moving forward with a new brand that it hopes will attract the attention of younger customers who are not brand loyal and want to branch out to affordable gourmet foods.
The company shared on Tuesday that its new brand, labeled, “Bettergoods,” was being rolled out nationwide this year with 300 new products, marking the largest private brand food launch in two decades.
Walmart shared that items will range in price from $2 to $15, with most of them coming in around $5.
Among the items will be premium bronze-cut pasta from Italy, plant-based mozzarella, oat milk non-dairy frozen desserts, various seasonings, and more.
Kirthi Kalyanam, a Professor and Executive Director of the Retail Management Institute at Santa Clara University’s Leavey School of Business, says that the move from Walmart comes as prices continue to push away consumers.
“This is in response to growing inflation, and food prices are becoming a large part of the consumer’s basket,” Kalyanam said, noting that the last time prices were this high was in the 1990s.
The numbers remain stark as inflation continues to stall just above 3%, resulting in the Federal Reserve holding interest rates, continuing to make it difficult for everyday Americans.
Even worse, prices at the grocery store, which used to be where Americans could catch a break, are taking a huge chunk out of their income.
“11.3% is the latest number as to what percent of a household budget is being consumed by buying food, and the last time that happened was in 1991,” he said.
With consumers shifting to store brands to address rising costs, Scott Morris, the senior vice president of private brands, food, and consumables at Walmart, says the time to launch Bettergoods couldn’t be more appropriate.
“Today’s customers expect more from the private brands they purchase – they want affordable, quality products to elevate their overall food experience,” Morris said in the statement.
Walmart shared that some Bettergoods items are already on shelves, but more will start popping up later this year.