Competing With the House: What Walmart’s Private Labels Mean for You
Walmart Isn’t Playing Around with Private Label
Private label used to be the bottom shelf. Now, it’s the strategy.
At Walmart, store brands account for close to 30% of unit volume. But it’s not just about price anymore—it’s about intent. Walmart isn’t tossing a few budget SKUs on the shelf. It’s building entire brand systems:
- Great Value: Covers the basics with sharp price perception
- Equate, Parent’s Choice: Own the wellness and baby care lanes
- Marketside: For fresh foods that feel a little more premium
- Bettergoods: Launched in 2024, it’s designed to go toe-to-toe with the best CPG has to offer—clean labels, international flavors, and curated packaging
You don’t roll out a brand like Bettergoods on a whim. This is a long game—and it’s already moving fast.
Where It Hurts the Most: Categories Getting Crowded
Recent data from Numerator shows private label penetration pushing north of 25% in categories like household consumables, grocery staples, home & garden, and office supplies.
And guess what? Those are Walmart’s sweet spots. That’s where pricing architecture matters. That’s where velocity wins.
If you sell in one of these categories, you’re already feeling it:
- Reset timelines getting shorter
- Private brand lines creeping wider
- Buyers asking sharper questions about your margin and velocity
That’s not pressure—that’s the new baseline.
Yes, Walmart’s Competing With You. Now What?
Let’s be honest: it’s a strange dynamic. Your biggest customer also sells a version of your product—usually cheaper, often with better placement. But this isn’t new. It’s just accelerated.
Here’s how smart suppliers are responding:
- Justify Every Premium
If your product costs more than Great Value or Equate, it better earn it. Ingredient quality, functional benefits, brand halo—bring the receipts. - Bring Incrementality or Bring Innovation
If you’re not growing the category or creating something private brand can’t do, you’re vulnerable. Period. - Use Walmart Connect Like Your Future Depends on It
Because it probably does. Shoppers can’t buy what they can’t see—and the algorithm favors what sells. Media spend isn’t optional anymore. It’s defensive positioning. - Get Close to the Buyer and Closer to the Data
Use Luminate or any other performance data you can get your hands on. If you can prove you’re converting a different shopper, or building a basket, you’ve got leverage.
Don’t Try to Beat Them at Their Own Game—Change the Game
Private label isn’t going away. It’s getting smarter, faster, and in many cases, better. So don’t mimic it—differentiate.
Offer something that can’t be easily copied. Think brand equity, social proof, problem-solving functionality, or adjacent category expansion. If you’re a one-trick pony, that trick better be spectacular. If you’re a multi-category brand, use that depth to tell a bigger story.
And if you’re really bold? Bring Walmart a private brand idea of your own. Some of the most enduring supplier-retailer partnerships came from vendors helping Walmart build what comes next—not just defend what’s already there.
Final Thoughts: It’s Not Personal, It’s Portfolio
The shelf has changed. The algorithm changed. The way shoppers think about value, quality, and brand changed. And Walmart? They’re not waiting around.
The question isn’t, “How do we stop private label?”
It’s, “What are we doing that private label can’t?”
If you can answer that with clarity—and data—you’re not just safe. You’re essential.
And in Bentonville, essential is the new shelf space.
Matt Fifer
Matt Fifer is a former Walmart corporate leader and the founder of Conversations On Retail and Winning With Walmart. After nearly 13 years with Walmart in operations, marketing, and international M&A, he launched a series of companies focused on helping retailers and suppliers collaborate and grow.
Today, he travels the country exploring how automation, data, and digital media are reshaping the relationship between retailers, brands, and shoppers.