This past week Forbes featured a great article on Walmart and Private Brand with commentary on both Kroger and Costco.
Wal-Mart Turns To Private-Label Products
Looking to take back market share from competitors like Kroger, the discount giant expands other divisions. As budget-minded shoppers roll through grocery store aisles looking for ways to stretch their cash, grocers are responding to the competitive pricing environment by doing their own share of penny-pinching.
For Wal-Mart Stores which touted itself as the low-price leader even when other stores tried to lure higher-income shoppers with remodeled stores and improved product mix–private-label products are the key. In March, the retailer said it would expand its Great Value store brand to offer more cheaply priced groceries and consumer staples to its customers.
Supermarket operator Kroger, which has one of the best-developed private-label businesses in the sector, has been able to win market share from rivals because store brands grant retailers more control over costs and pricing. In Kroger’s first quarter, private-label revenue accounted for 35% of the quarter’s sales.