{"id":4268683,"date":"2024-05-24T22:45:11","date_gmt":"2024-05-24T20:45:11","guid":{"rendered":"https:\/\/www.deptagency.com\/insight\/what-retailers-can-learn-from-target-and-walmarts-private-label-play\/"},"modified":"2024-05-24T22:45:11","modified_gmt":"2024-05-24T20:45:11","slug":"what-retailers-can-learn-from-target-and-walmarts-private-label-play","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-au\/insight\/what-retailers-can-learn-from-target-and-walmarts-private-label-play\/","title":{"rendered":"What retailers can learn from Target and Walmart’s private label play"},"content":{"rendered":"
\n\t\n\t<\/svg>\n\t\t\t\n\t\t\tBack to all articles\t\t<\/span>\n\t\n<\/button>\n\t\tWhat retailers can learn from Target and Walmart’s private label play\t<\/h1>\n\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/picture>\n\t\n\t<\/div>
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\n\t\tNoah Jackson\t\t
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\n\t\t\t\t\tDate\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t24 May 2024\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n<\/div>\n\n
\n\t\n\t\tPistachio nut butter, guacamole-flavoured tortilla chips, and oat milk-based ice creams are hitting Walmart\u2019s shelves\u2014complete with eye-catching packaging and ringing in at less than $5 a pop. These products are among the 300 in the retailer\u2019s new private label line Bettergoods, its first food brand launch in 20 years.

Described by Walmart as \u201ca new elevated experience that delivers quality, unique, chef-inspired food at an incredible value,\u201d Bettergoods is emblematic of the shifting perception of private label brands in the FMCG sector and changing consumer behaviours, especially in the United States\u2014and retailers and national CPG brands<\/a> should take heed.\u00a0\t<\/p><\/div>\n\n
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\n\t\t\n\t\tThe legacy of private label brands\t<\/h2>\n\t\t\t\t\t
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\n\t\tPrivate-label brands have been a mainstay of Europe\u2019s FMCG sector for decades, accounting for 35% of total category sales (SIAL Insights, 2022). But when it comes to the US, consumers have historically had a more complicated relationship with lower-cost, store-brand products.\u00a0

During periods of inflation, American consumers shift from branded goods to private labels but have generally returned to branded ones once inflation stabilises. This reflects an enduring perception that private label goods, while useful in a pinch, do not represent long-term value and quality. This stands in contrast to Europe, where, for example, 70% of consumers<\/a> frequently opt for private label goods, and 50% plan to continue doing so regardless of the economic environment.\u00a0

Target is a notable leader in the private label space, boasting a portfolio of more than 45 owned brands across food and beverage, clothing and apparel, home decor and furnishings, and more. It\u2019s built a reputation for making affordable products look expensive through elevated designs that would have even the most savvy shoppers thinking they\u2019re shopping an outside brand.\u00a0

So, it\u2019s not entirely unsurprising that Walmart\u2019s Bettergoods seems to have taken a leaf out of Target\u2019s private label playbook, with branding that could fit in seamlessly on the shelves with Target\u2019s Good & Gather or Favorite Day food lines. But will the line work alongside Walmart\u2019s existing private-label food brand Great Value, and more importantly, will it resonate with the retailer’s shoppers? The signs are pointing to yes.\u00a0\t<\/p><\/div><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\n\t