Private-Label vs. Brand Names the Wal-Mart Way
Wal-Mart may be a lot of things, but one thing is certain, they know how to take advantage of economic woes. For the past year the huge retailer has been updating its grocery private label store brand, “Great Value”, to compete with large, well known brand names. That news is sure to make top brands very nervous indeed.
For one thing, “Great Value” is simply not another store brand. It’s the largest grocery brand in the nation. And, if they can convince consumers it’s as good or better than the more expensive, popular brand names, expect the national brands to suffer from more than an upset, empty stomach.
This article goes into more detail. Nonetheless, it’s very hard to compete with Wal-Mart, and big brands need to find a way in order to preserve their market share — at least near term. The long term ramifications will be played out once the economy rebounds.
