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Wal-Mart's food line getting a makeover

Wal-Mart employee Michelle Triplett stocks items in the food area of a Wal-Mart in Chicago

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TEXT OF STORY

Renita Jablonski: Campbell Soup Company reports earnings today. Analysts expect the company turn a profit -- though not quite as mmm, mmm good as a year ago. That's because competition is heating up. Wal-Mart plans to make over its private food label in the next few weeks to attract more shoppers as an example. Danielle Karson has more.


Danielle Karson: Retailers' private brands rake in more profits than national brands. For consumers, private label products save them money. Analysts say Wal-Mart's decision to spruce up its Great Value food line with new packaging and store ads is a shrewd move.

John Stanton: Their target market is really the group who's searching desperately to save money. So they're more or less obligated to give people this kind of a value choice.

John Stanton teaches food marketing at St. Joseph's University. He says lots of shoppers are scrambling for good deals, and Wal-Mart's label facelift should attract more of them. But he says other food makers shouldn't be nervous.

Stanton: People are searching everywhere to save money. But it doesn't mean everyone is going to give up convenience, taste in order to save money on the private label brand.

Stanton says the success of brand name companies comes from developing new products and innovating -- not from dollar for dollar price competition.

I'm Danielle Karson for Marketplace.

MARLENE MITCHELL's picture
MARLENE MITCHELL - Oct 25, 2009

YES, YOU HAVE CHANGED FROM COLORED LABELS ON YOUR PRODUCTS TO BLACK AND WHITE, BUT I HAVE A COMPLAINT ON WHY HAVE YOU CHANGED THE BREAD RECIPE ?? I HAVE ALWAYS PURCHASED THE SPLIT TOP WHITE BREAD ( WALMART BRAND ) AND NOW IT IS NO LONGER SOFT LIKE IT USED TO BE..... WHAT ARE YOU LEAVING OUT TO MAKE IT CRISPER WHEN I TOAST IT..AND NOT SOFT FOR A SANDWICH EITHER WHEN NOT TOASTED.. DO NOT LIKE THE CHANGED RECIPE..... IT IS NO LONGER SOFT ....

Bronskrat Polecat's picture
Bronskrat Polecat - Feb 23, 2009

Isn't this act of selling your own brand in your store similar to Microsoft bundling IE with their operating system?