Walmart’s new Sam’s Choice Italia line came out the same week the company’s e-commerce subsidiary Jet released its first private label line, Uniquely J. That selection is aimed at millennial shoppers, and viewed throughout the industry as Walmart’s response to Amazon’s and Whole Foods’ private label growth. Sam’s Choice Italia also shows that Walmart, despite the predominance of national brands on its shelves, is also eager to pursue the growth opportunities store brands present. The presence of a new Italian line in Walmart’s points of sale is part of the agreement signed last May between the American retail giant and ICE-ITA (Italian Trade Agency). As IRI’s research shows, consumers are becoming increasingly accepting of private label, and now seek out items for their prices as well as their quality. Private label makes up 17% of grocery sales, according to the Private Label Manufacturers Association. Walmart doesn’t have brands that are as sophisticated as Kroger’s Simple Truth or Target’s Archer Farms. But the company has significant resources to put into its private label growth, and can quickly scale up lines like Sam’s Choice Italia. It can also use private label to pressure national brands to offer even more favorable pricing.
The agreement with ICE
On the occasion of the fifth edition of the “TuttoFood” trade exhibition in Milan, the Italian Trade Agency and Walmart Stores, Inc. formalized the signing of a collaborative agreement which is part of the continuing efforts, supported by the Italian Ministry of Economic Development, to increase the knowledge, awareness, and consumption in the United States of “Authentic Italian” food and wine products, as well as Walmart’s interest in the development of a curated range of “Best in Class” products imported directly from Italy. The news was anticipated in this interview with Italianfood.net.
The most popular cuisine in America
As far as the choice of Italian cuisine goes, this was likely a no-brainer for Walmart. According to a 2015 survey by the National Restaurant Association, Italian is far and away the most popular cuisine in America, enjoyed at least once a month by 61% of consumers. As Walmart grows its private label footprint, grocers throughout the industry are also growing theirs. Kroger, which has seen its store brand sales shoot up 37% since 2011, says it plans to continue investing in brands like Simple Truth as part of its Restock Kroger growth initiative. Discounters Aldi and Lidl stock predominantly store brands, including numerous award-winning items. Even struggling companies like Southeastern Grocers are putting a lot of money into their private collections. In an intensely competitive industry, grocers want to offer unique products that shoppers can’t find anywhere else.
