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Walmart vs. Amazon Grocery War Heats Up

Private Label Expansion Latest Volley from Walmart

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Walmart last week launched its largest private-brand food initiative in two decades, named Bettergoods.

Bettergoods offers a range of "chef-inspired" items such as chicken wings with brown sugar BBQ dry rub, pistachio nut butter, and double vanilla premium ice cream, all affordably priced between $2 and $15.

With over 300 products under this new label, Walmart is focusing on culinary experiences, plant-based options, and items made without certain ingredients.

The strategic expansion of private labels comes as Walmart and Amazon vie for dominance in the grocery market. According to the PYMNTS Intelligence report “Whole Paycheck Report,” Walmart continues to lead with an 18.9% market share in food and beverage spending as of the end of last year, whereas Amazon has made modest gains, reaching a 2.9% share.

Amazon is also expanding its private-label selection, particularly through its Whole Foods outlets, even as it streamlines its brands in other categories.

Last year, Amazon scaled back its offerings in clothing and furniture but continues to push forward in the grocery sector, citing significant growth of Amazon’s non-perishables grocery business and the improved profitability trajectory in grocery over the past 18 months.

Target has also leaned into private labels, announcing their Dealworthy line in February.

A PYMNTS Intelligence survey indicates a growing shopper preference for private-label products due to rising prices, with 86% of grocery shoppers changing their purchasing behavior in response to inflation. The survey further reveals that a significant portion of consumers are trading down to more affordable options, making the competitive pricing of private labels like Bettergoods especially appealing.

Bettergoods joins Equate, Great Value, Home Essentials and multiple other private label brands across Walmart categories.

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