Wal-Mart’s food line getting a makeover

Marketplace Staff Feb 23, 2009
HTML EMBED:
COPY

Wal-Mart’s food line getting a makeover

Marketplace Staff Feb 23, 2009
HTML EMBED:
COPY

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.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.