Walmart and Amazon are expanding their private-label grocery offerings in a bid to strengthen customer loyalty and secure market share amid shifting consumer behaviour.
Walmart has launched a new in-house brand, Bettergoods, marking its most significant food brand rollout in 20 years. The range includes a variety of affordable, chef-inspired items designed to appeal to inflation-hit shoppers seeking value without compromising on quality.
Meanwhile, Amazon is intensifying efforts in grocery, particularly through its Whole Foods business. While the company has pared back private-label offerings in other sectors such as apparel and furniture, it continues to expand its grocery lines. Amazon CEO Andy Jassy recently highlighted non-perishable groceries as a key driver of growth, noting significant year-over-year performance.
A recent PYMNTS Intelligence survey found that 86% of US grocery shoppers have changed their purchasing habits due to inflation, with a notable shift toward more affordable and lower-quality options, particularly among low- and middle-income consumers.
Walmart currently holds a dominant 18.9% share of food and beverage consumer spending in the US, compared to Amazon’s 2.9%, though the latter has made incremental gains in recent quarters. Both companies are leveraging their private-label strategies to reinforce their positions as budget-friendly grocery destinations.