Walmart (NYSE:WMT) is debuting a new grocery brand, as the discounter tries to retain the shoppers it has attracted during a period of high inflation.
On Tuesday, the big-box retailer said it will roll out a private label called BetterGoods, a line of more trend-and chef-driven foods. Most items will be priced at less than $5.
Walmart is already the country’s largest grocer by revenue. Nearly 60% of the company’s sales in the U.S. came from its grocery business in the most recent fiscal year.
Walmart’s large food business has helped it drive store and online traffic, especially as customers have watched their discretionary spending during a period of high inflation. And its low-priced reputation has helped the company attract higher income grocery shoppers as inflation pinches budgets.
In the most recent fiscal year that ended in late January, Walmart’s net sales for groceries in the U.S. rose nearly 7% year over year to $264.2 billion.
But Walmart, like other grocers, has seen room to grow its private label business as shoppers seek new flavors and lower prices. During the Covid-19 pandemic, some national brands’ products ran low at stores and caused customers to start buying the retailers’ own brands.
WMT shares dipped 55 cents to $59.69.