Walmart is going bougie

Get your expensive china ready: Walmart, the country’s largest grocer, yesterday unveiled a new private-label, premium food brand called Bettergoods.

The brand will carry plant-based, gluten-free, and higher-end food – but priced to be affordable. According to Walmart, more than 70% of the products – which encompass ~300 food-items, including cardamom rose raspberry jam and curry chicken empanadas – will cost less than $5.

Between the lines: Walmart already owns one of the largest food and consumable brands in the US: Great Value. But GV mostly focuses on selling basic, everyday items at lower prices than other national brands.

Bettergoods, on the other hand, is expected to appeal to both younger and more affluent shoppers – key demographics that, as inflation continues to persist, are being increasingly attracted to Walmart and its low-priced reputation.

• The company’s research indicates these consumers want “elevated culinary, inspirational types of items” and healthier foods like plant-based products.
• Bettergoods’ products will fit into three major areas: items with more of a culinary flair, plant-based items, or items that exclude certain ingredients (like gluten).

Walmart’s move comes as consumers are being more thoughtful about purchases. McDonald's, 3M (maker of Scotch tape and Post-it Notes), and Newell Brands (Coleman and Rubbermaid), all revealed on earnings calls over the past week that they’re seeing consumers be increasingly cautious with discretionary spending.