Study: Mass merchants target diverse consumer group with private label offerings

ROCKVILLE, Md. — Walmart and Target are targeting multi-cultural and health-conscious consumers with their private-label products directed at multicultural and health-conscious consumers.

The findings were part of a study by market research firm Packaged Facts on mass merchandisers, "The Supercenter Grocery Shopper: U.S. Consumer Patterns at Walmart, Target, Meijer and Fred Meyer." The report noted that mass merchandisers in recent years have marketed private-label food and beverage products that rival those of national brands in price, value and quality.

"National and regional supercenters alike have upped the ante in terms of the breadth of private-label products offered, the type of product information displayed on packaging and the level of premiumization of these products," Packaged Facts publisher David Sprinkle said.

Walmart has led the pack in terms of private-label food and beverage purchases, accounting for 60% of customers overall. In particular, its Great Value brand calls out the presence or absence of potential allergens on packaging, while the retailer has sought to provide healthier options by changing ingredients, such as lowering the sodium content in items like ketchup and canned vegetables.

Meanwhile, Target has reached out to cultural groups, such as Latinos and Asians, through its Archer Farms private-label brand, with such products as Mediterranean-inspired pasta salad kits and Indian-based summer sauces, in addition to making Archer Farms products certified organic, which could appeal to health-conscious consumers.

The survey found that 52% of Walmart shoppers say prices are why they shop at their favorite stores, while almost 60% say they always look for special offers.