In Europe there are many retailers that achieve 50% Private Brand penetration, and in North America the number hovers around 20%, with the exception of Trader Joe’s and Aldi who are impressively committed to Private Brands with more than 90% penetration.
So is it really possible that 100% Private Brand penetration is on Walmart’s radar? You bet it is, but you need to delve into non-foods, hardlines and home décor to see it. In other words, once you get beyond the myth that Great Value alone is Walmart’s private brand strategy, you see many 90-to-100% solution categories.
Let’s start with a category like lighting at Walmart (tabletop, desk, floor), and see what the brand portfolio is – Mainstays, Canopy, Hometrends, Better Homes & Gardens, Yourzone – all of them are Private Brands or Exclusive/Licensed in the case of Better Homes & Gardens a licensed/exclusive brand that is controlled and sourced by Walmart.
Try another category in home décor like picture frames (wall and tabletop). There is an entire aisle dedicated to picture frames in every Walmart, in the smallest of stores at least 48 linear feet, and it is 100% Private Brands – Mainstays, Canopy, Hometrends and Better Homes & Gardens. You cannot buy a picture frame that is not Walmart’s, and the truth is, the consumer doesn’t care because they feel like various lifestyle, variety and pricing needs are being fully met.
There are literally dozens of categories that are strategically addressed this way by Walmart’s Private Brand portfolio, and it is a powerful insight that underlies their ability to balance margin on the other side of the store.
This is one of many insights that are part of our new report MPB Sightline MPB SIGHTLINE The 2013 Walmart Private Brand Portfolio, An In-Depth Analyses of Walmart’s Private Brand Strategy.
With over 450 pages of detailed analysis of Walmart’s Private Brand portfolio and strategy, SIGHTLINE is a must-have for all retailers, manufacturers, national brands, agencies, brokers, vendors and analysts.
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