Private-Label Foods Turn Consumer Focus to Supercenters

ROCKVILLE, Md. Private-label food and beverage products from supercenters have consumers turning away from traditional supermarkets. About 60% of American adults shop for groceries at supercenters, including 57% who grocery shop at either Walmart or SuperTarget and 37% who shop at both supercenters and traditional supermarkets, according to a recent report by Packaged Facts.

The report, "The Supercenter Grocery Shopper: U.S. Consumer Patterns at Walmart, Target, Meijer and Fred Meyer," points out that private labels from supercenters rival national brands in terms of price, value and quality, intensifying consumer perception that supercenters are viable alternatives to supermarkets when purchasing food.

Overall the report found price, in addition to quality, is a driving force behind where people shop and what products they buy. Fifty-two percent of Walmart customers shop at their favorite stores because of the prices and about 60% say they always look for special offers. Despite being more affluent consumers, Target shoppers are swayed by coupons to try new products, look to clearance items and are most likely to visit a store because of a sale.

Findings published in the report show 60% of customers who purchase private-label foods claim to shop at Walmart. The supercenter's Great Value brand proves popular with consumers, especially those seeking alternatives to national offerings in dairy, frozen food, meat, snack and dessert segments. The product line also points out the presence or absences of potential food allergens on product packaging. In an effort to provide healthier food options at affordable prices, Walmart began reformulating thousands of packaged foods including Great Value items.

Target's expansion of its Archer Farms private-label brand into a variety of premium internationally-inspired products has made the corporation popular with several influential grocery shopper segments such as, Latinos, Asians and foodies. The product line is also certified organic, enhancing its appeal to a growing population of health conscious Americans.