Retailers are revamping their private label offerings to attract a broader range of shoppers in search of quality and affordability. But the private label expansion is not just more of the same old approach in packaging design.
Brands like Target, Walmart, and CVS have recently shifted away from the traditionally plain and value-focused aesthetics of private label generics. Replacing them are contemporary, vibrant packaging featuring colorful graphics and approachable logos of their store brands. This strategy, which appears to cater to both high-income shoppers and the budget-conscious crowd simultaneously, is rewriting the rules of what private label looks like.
Walmart, CVS expand private label lines
Inc. reported on Walmart's April launch of bettergoods, the retailer’s largest private grocery brand in decades, underscoring this hot trend. The new private label brand offers 300 items, including frozen foods, dairy, snacks, beverages, pasta, soups, coffee, and chocolate, with most products priced under $5. Despite the wide range of products offered, Walmart emphasizes consistency and simplicity in the bettergoods packaging design, with bold colors, minimal graphics, and clear messaging.
Walmart aims to attract cost-conscious consumers, with what they call “a new elevated experience that delivers quality, unique, chef-inspired food at an incredible value” through the new store brand.
With bettergoods, Walmart hopes to beat the competition by offering unique items, in another step away from traditional private label approaches. “Unlike many private brands that provide direct alternatives to national brand offerings at a lower price, many bettergoods items are totally unique to Walmart, introducing customers to new and exciting flavors and concepts,” reads Walmart’s press release.
Other big retailers are also joining the trend. As reported by Fast Company, CVS’ recently launched Well Market private label line includes snacks, beverages, and groceries. Package designs feature an approachable cursive logo, making that pharmacy-bought popcorn appear, as Fast Company writes, “anything but clinical.” Catering to busy customers with a prominent real estate on the packaging for nutritional information, packaging designs balance function and shelf appeal.
Gen Z drivers and Gopuff’s premium brand addition
Big retail's private label brands are gaining significant traction among Gen Z consumers, according to a recent Forbes article. The report cites a survey by the Private Label Manufacturers Association that found that 64% of Gen Z shoppers frequently buy private label products, with 51% choosing where to shop based on these offerings. Factors influencing these Gen Z preferences include their sustainability and environmental values — suggesting that private label growth may continue in the long term as retailers adapt to these demands.
Newer players such as grocery delivery company Gopuff—popular with Gen Z—are also expanding their private label offering to appeal to the demographic.
Business Wire posted about Gopuff's recent boost of its private label brand Basically. Not only is Gopuff offering a segmentation they are calling Basically Premium, which is a new line of unique, high-quality products, they are also expanding the existing Basically brand, which launched in 2022. The new products, such as gluten-free beef sticks, aluminum-bottled spring water, and premium coconut water, cater to Gopuff customers' clicking trends: 20% of orders contain at least one private label item.
