Walmart has long defined itself by one core promise: low prices on everyday essentials.
As the largest grocer in the U.S., Walmart dominates food retail by offering a wide range of products and ultra-competitive pricing that other big-box stores and supermarkets struggle to match.
Grocery accounts for a major share of Walmart’s business. And the retail giant has built its reputation on being the place where shoppers can stretch their budgets the furthest.
A key part of that equation is Walmart’s private-label portfolio, led by the Great Value brand.
For decades, Great Value has been a staple in American households, known less for flash and more for function and affordability. The brand encompasses everything from pantry staples to frozen foods, and it has a reputation for getting the job done, so to speak.
But that reputation comes with trade-offs.
While Walmart excels on price and selection, it has historically lagged behind competitors when it comes to brand perception and presentation.
Store brands have long been seen as generic alternatives. And even as private labels have improved industry-wide, Great Value’s packaging and identity haven’t changed much — until now.
Walmart gives its Great Value brand a refresh
Walmart is rolling out a sweeping redesign of its Great Value private-label brand, marking the first major overhaul in more than a decade.
The update will affect nearly 10,000 products across food and household categories, making it “the most extensive private brand update in Walmart’s history,” according to a company statement.
A big part of the overhaul is more modern and colorful packaging. Walmart will also be displaying nutritional information more prominently so consumers don’t have to work hard searching for it.
Related: Costco adds popular fast food product to lineup
To ensure a smooth transition, Walmart says its new packaging will be phased in over the next two years, beginning with salty snacks and eventually hitting all product categories.
“We believe great design should be accessible to everyone,” said David Hartman, Vice President, Creative at Walmart. “At our scale, that means creating something that works clearly and intuitively across thousands of individual items.”
Great Value has higher household penetration than any other U.S. store brand, with 87% of households buying at least one Great Value item in the past year, according to data from Numerator as reported by CNBC.
In a CNBC interview, Hartman said customers “love the product across food and consumables, but they didn’t particularly feel very proud to display it in their home or with their families.”
The new overhaul could change things for Walmart and boost sales even more.
Image source: Shutterstock
Why packaging matters for shoppers
Clearly, millions of U.S. consumers are loyal to Walmart. So it may seem counterintuitive for the company to sink so much money into a brand refresh.
But Walmart’s overhaul of the Great Value line isn’t just about packaging. It’s also about perception, trust, and making value easier to recognize.
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As grocery prices have soared, private-label products have become central to how consumers shop. Walmart’s Great Value already reaches the vast majority of U.S. households and can save families significant money compared to national brands.
But as private-label competition intensifies, price alone isn’t always enough to win.
The Great Value redesign, however, could solidify Walmart’s edge. Improved packaging can, in many consumers’ eyes, signal quality — something that can influence purchasing decisions as much as cost.
Just look at the strength of Costco’s Kirkland brand. Costco’s store brand is a huge driver of sales for the company, and it’s because members recognize the value inherent in Kirkland products.
In other words, Kirkland doesn’t just win on price. It also wins on quality. Walmart’s Great Value currently wins on the former, but not so much the latter. This refresh could change things, though.
“In order to compete against premium-perceived private labels, such as Kirkland, an overhaul of the Great Value brand is necessary,” retail expert Frank Margolis told RetailWire. “But this overhaul must be more than cosmetic. The product quality itself must increase, not just the label and appearance.”
“A redesign will help move the dial, but in doing so, the aim is to strengthen value perceptions and encourage more consumers to trade down to Great Value from national brands,” retail expert Neil Saunders said in the RetailWire story.
The role of the Great Value brand is to “provide strong opening price points and lower-priced options,” and Walmart shouldn’t necessarily aim to create a “hugely aspirational label,” Saunders added.
But if Walmart pulls off its Great Value overhaul successfully, customers might look to the brand as an affordable option that doesn’t require them to give anything up.
Related: Sam’s Club, BJs step up in area Costco dominates
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