Walmart is launching a new grocery brand, bettergoods, a line of premium foods aimed at bringing in new and often higher-income shoppers and encouraging current shoppers to increase their spending.
Walmart plans to introduce over 300 bettergoods products to its shelves this year, with many priced at $5 or lower. The entire line will be rolled out over the coming months. Currently, customers can buy select bettergoods products in stores and on the Walmart website.
Bettergoods is Walmart’s largest private brand food launch in 20 years. It will be added to Walmart’s current selection of private brands alongside Great Value. According to Numerator, Great Value is the leading private grocery brand in the country, based on the percentage of households purchasing it in recent months.
In the most recent fiscal year, almost 60% of Walmart’s sales in the U.S. came from its grocery business. Walmart is already the country’s largest grocer in terms of revenue.
However, the new private label brand will encounter competition from other retailers who have their own brands.
For example, one of Walmart’s main competitors, Target, launched a new grocery brand called Good & Gather in 2019 with a wide range of items. Target also debuted another brand called Favorite Day, which is made up of unique takes on popular foods.
To differentiate the brand, Walmart is marketing bettergoods to shoppers looking for “elevated culinary experiences,” according to the company. Walmart also designed the packaging of bettergoods in a variety of colors for a more premium look.
Walmart intentionally chose unique designs for bettergoods because packaging has the power to shape how consumers view a product. According to a 2018 study conducted by Pregis and the University of Wisconsin, the quality and design of packaging can alter the retail price that consumers are willing to pay by up to 45%.
By making packaging look intentionally cheap, designers can communicate a low price. Conversely, designers can suggest a higher value for a cheaper product by designing packaging to look premium.
