What Are 'Pizzadillas' And Why Should Wal-Mart Investors Care?

Wal-Mart Stores, Inc. WMT is gearing up for the next major battlefield and attract new customers with a major push into the private label segment. Private label products, also known as store brands, are products that simply contain a stores own name or brand. It offers consumers the opportunity to save a few dollars versus the much larger national brand names, such as PepsiCo, Inc. PEP or Kellogg Company K. TheStreet's Brian Sozzi offered a first-hand glimpse at Wal-Mart's new initiatives in the private brand business at the same time that Amazon.com, Inc. AMZN is working on its own similar business line. Related Link: Amazon To Produce Its Own Brand Of Diapers, Baby Foods And More According to Sozzi, sales of private-label products "have been hot" as consumers "continue to cunt their pennies." He added that over the past 2 years, sales of store brands rose 5 percent to $5.4 billion. One of the private label items Wal-Mart will sell is "Pizzadilla" which is one-half pizza, one-half quesadilla. The box will contain Wal-Mart's brand name, 'Great Value.' Sozzi was also shown Wal-Mart's private-label diapers and razors. "According to a Walmart spokesman, private-label products help it offer lower-priced products to economically sensitive consumers," Sozzi noted. "Also, by cutting out the large national brands, the company could move quicker to introduce innovative products." Another interesting product Wal-Mart plans to sell is its own craft beer which comes in a 12-pack for $13. The company already sells the beer but in roughly half of its 4,600 total U.S. store count. A private-label prosecco wine is also in the works. Finally, Sozzi also pointed out that Wal-Mart's warehouse chain Sam's Club will also be full of its own private-label products under its own Member's Mark moniker. In fact, the private brand is intended to attract a client base that boasts an annual income in the $75,000 to $100,000 range.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: MediaBrian SozziPizzadillaSam's ClubTheStreetWal-MartWal-Mart Private Label
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!