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Walmart Brings Added Competition To The Grocer Space

Walmart Brings Added Competition To The Grocer Space
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The competitive landscape within the grocery store market continues to mount with Wal-Mart Stores Inc (NYSE: WMT)'s launch of a private label brand for its property, the New York Post reported. will soon introduce dozens of food and household items, likely as a counter to not only, Inc. (NASDAQ: AMZN)'s acquisition of Whole Foods, but the rapid expansion of German discount chains Aldi and Lidl.

The private label brands that will introduce are expected to be "better quality than many of the national name brands," retail consultant Burt Flickinger told the Post. Initially, the products will exclusively launch on for one year and will likely make their way to afterwards. The products will eventually be sold in-store. 

Other grocery chains and food giants are surprisingly embracing's new product line even though it's a competitor because it "tempers Amazon's leverage," the Post added.

Perhaps the news could also be welcomed by grocery store investors, as shares have been hard hit as of late. For example, Kroger Co (NYSE: KR)'s stock is down more than 13 percent over the past three months and around 30 percent since the Amazon-Whole Foods tie-up.
"The branded vendors are privately telling us that they are relieved about the division becoming a big private label seller," Flickinger said. "They see as the best opportunity to slow Amazon's march toward making unreasonable demands in its procurement."

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Posted-In: Burt Flickinger food Food Makers Food Prices food stocks Grocery retailersMedia Best of Benzinga


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