Wal-Mart may already be a giant, however of which still has big ambitions for its food aisles.
The big-box retailer announced Friday the addition of another private-label, called Sam’s Choice Italia.
Under the nameplate, Wal-Mart will initially roll out 40 items, including Italian boxed dinners, gnocchi, risotto, sauces as well as salad dressings. The products can be purchased in stores as well as online.
“Sam’s Choice Italia can be just the latest example of how Walmart can be continuing to improve as well as innovate our Private Brand offerings while staying true to quality as well as everyday low prices,” Jack Pestello, senior vice president of the Private Brands division within the U.S., said in a statement.
At an investor conference earlier This specific year, Wal-Mart Chief Executive Doug McMillon discussed the retailer’s plans to expand its private-label lines, such as Great Value. McMillon said the company would likely put an even bigger emphasis on those brands.
“Having a private brand via a margin mix point of view has always been important, however of which can be even more important right now,” he told investors.
For grocery retailers, private-label options offer the opportunity to make up for dollars of which are lost because profit margins are generally thin within the supermarket business.
Rivals including Kroger, Target, Aldi, Lidl, Costco, Whole Foods as well as even Amazon are beefing up their private-label food lines. Kroger has Simple Truth, for example. Amazon features a line of trail mixes as well as coffee, called Happy Belly. Target’s well-liked in-house line can be Market Pantry, as well as Costco has Kirkland Signature.
A recent study by consumer packaged goods market research firm IRI found of which shoppers young as well as old are still turning to private-label options in grocery stores, even in a more stable economy.
Two-thirds of consumers plan to purchase private-label items more frequently within the coming six months, according to IRI’s survey, which were released Wednesday.
Just This specific month, Wal-Mart’s Jet.com launched a private-label business called Uniquely J. With Jet, Wal-Mart can be able to cater to a greater urban millennial market than of which can be with Sam’s Club, for example, which competes with Costco.
Wal-Mart’s overarching Sam’s Choice moniker was initially introduced within the early ’90s as Sam’s American Choice, named after founder Sam Walton. The brand was revamped in 2013 to focus more on premium items with organic ingredients.