Health- and Ethnic-Positioned Private Label Foods From Walmart and Target
Intensify Battle for Consumer Dollars
ROCKVILLE, MD -- (Marketwire) -- 03/29/13 -- Approximately 60% of
American adults shop for groceries at a supercenter, including 57% of
adults who grocery shop at either Walmart or SuperTarget and 37% who
shop at both supercenters and traditional supermarkets, according to
The Supercenter Grocery Shopper: U.S. Consumer Patterns at Walmart,
Target, Meijer, and Fred Meyer, a recently released report by market
research publisher Packaged Facts.
Recent years have seen an influx of private label food and beverage
products from supercenters that rival national brands in terms of
price, value, and quality. Consumer perception that supercenters can
serve as viable alternatives to supermarkets when making food
purchases has intensified as a result.
"National and regional supercenters alike have upped the ante in
terms of the breadth of private label products offered, the type of
product information displayed on packaging, and the level of
premiumization of these products," says David Sprinkle, publisher of
According to findings published in the report, approximately 60% of
customers who purchase private label food and beverage products claim
to shop at Walmart. The supercenter's recognizable Great Value brand
is a hit with consumers, especially those seeking alternatives to
national offerings in the dairy, frozen food, meat, and snack/dessert
segments. The Great Value line has been applauded by some for calling
out the presence or absence of potential allergens on product
packaging. Additionally, Walmart's mission to provide healthier food
choices at affordable prices has lead the company to begin
reformulating thousands of everyday packaged food items over the next
few years. These efforts have included sodium reductions in Great
Value items such as ketchup and various canned vegetables.
When it comes to cultivating a large and loyal base of multicultural
consumers, few retail outlets can compete with the efforts of Target.
Packaged Facts states that the corporation's expansion of its Archer
Farms private label brand into a variety of premium
internationally-inspired products has made it even more popular with
eral highly influential grocery shopper segments: Latinos, Asians,
and Foodies. Archer Farms' product line extends beyond the obligatory
assortment of salsas and dips to include a variety of simmer sauces
based on Indian cuisine, in addition to Mediterranean-inspired pasta
salad kits, among other offerings.
The fact that many Archer Farms products are certified organic only
enhances their appeal to a growing population of health-conscious
Americans. With the right marketing, these organic products could
even be used to bring more foot traffic to the store among the
fiscally potent Baby Boomer and Senior consumer segments -- both of
which are underrepresented at Target and SuperTarget supercenters,
according to findings in the report.
Going forward, it will be interesting to see how supercenters
continue to expand their private label product offerings to meet
consumer demand during a time when people want quality products at
affordable prices. It's clear that price, in addition to quality, is
a driving force behind both where people shop and what they purchase.
More than half of Walmart shoppers (52%) claim to shop at their
favorite stores because of the prices and almost 60% of Walmart
shoppers say they always look out for special offers. And despite
being the preferred supercenter for more affluent consumers, Target
shoppers are among the most likely to be swayed by coupons to try new
food products, and aren't afraid to look for clearance items. Target
shoppers are also the most likely to be drawn to a store because of a
sale, according to Packaged Facts.
For more information on The Supercenter Grocery Shopper: U.S.
Consumer Patterns at Walmart, Target, Meijer, and Fred Meyer, please
visit www.MarketResearch.com or
About Packaged Facts - Packaged Facts, a division of
MarketResearch.com, publishes market intelligence on a wide range of
consumer market topics, including consumer demographics and shopper
insights, consumer financial products and services, consumer goods
and retailing, consumer packaged goods (including foods and
beverages, health and beauty care, and household products), and pet
products and services. Packaged Facts also offers a full range of
custom research services. To learn more, visit:
www.packagedfacts.com. Follow us on Facebook, LinkedIn, Twitter,
Google+, and on our blog: http://packagedfacts.blogspot.com/
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