Walmart is experiencing significant growth in its grocery business as consumers increasingly rely on the retailer for their food purchases. The company attributes its success to various factors, including store renovations, expanded product offerings, and the popularity of its private label brands.
Walmart is doubling down on its grocery business as more consumers turn to the company for their food needs. The nation's largest retailer reported in the prior quarter that sales at U.S. stores rose 5.3% as it continued to gain market share in the grocery and general merchandise categories.
Part of the reason its seeing growth within the grocery segment, which has seen an uptick in costs from inflation, is that the company is remodeling the produce sections of its stores, and increasing the assortment of food that it's offering, according to Walmart CFO John David Rainey. 'It's very attractive. We've got a very high quality produce offering for people and it invites them in,' Rainey said. 'It's a much broader assortment than what we've had historically.' The company has been building new modernized stores and remodeling hundreds of others. Over the past three years, it remodeled about 700 stores each year on average, and it plans to convert more in the coming year. The company's new and updated stores include improved layouts, bigger product selection, refreshed signs, paint and shopping carts. Aside from its improved aesthetic, Rainey also credited its private brand as another driver. Walmart is seeing an increase in private brands as a larger share of overall sales, driven partly by consumers’ focus on price during high inflation. Earlier this year, the company launched its latest and most expansive private label brand, Bettergoods, which encompasses 300 items including frozen, dairy, snacks, beverages, pasta, soups, coffee and chocolate. Not only is the company offering a more expansive selection of food within the private label, but the quality of the food has improved as well, Rainey said. 'It's much broader and appeals to a lot more customers and members,' Rainey said, adding that 'the quality is just much different than what you've seen historically'
Walmart Grocery Sales Private Label Inflation
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