What: Walmart goes upmarket with a new private label.

Why it is important: Premiumization permeates every retailer including the largest ones.

Walmart has launched a new private label brand, Bettergoods, aimed at providing an "elevated culinary experience" with its vibrant and colorful branding that mimics more premium competitors. The company's vice president of creative and design, David Hartman, stated that the brand is designed to rival the desirability of leading national brands, leveraging packaging that suggests higher quality while maintaining affordability, a strategy similar to Target’s approach.

Bettergoods features a custom typeface and a single-word, all-lowercase logo to appear more approachable. The packaging adopts a multicolor scheme, moving away from Walmart’s more straightforward Great Value brand. This is part of a broader strategy to appeal to younger or more affluent consumers who favor vegan options and specialty ingredients, evidenced by products like plant-based shredded cheese and gluten-free chicken nuggets packaged in eye-catching, color-on-color designs.

The brand strategically uses artful packaging photography and carefully chosen typography to emphasize the premium nature of its ingredients. Despite the premium look, the products are priced affordably, with most items retailing for under $5, aiming to retain the increased customer base of higher earners that Walmart has seen due to inflation. This move reflects a broader trend of aligning product offerings with evolving consumer preferences, focusing on design and trend-forward elements to enhance customer appeal and satisfaction.

How Walmart launched a premium grocery label