Walmart’s growing emphasis on private brands is paying off, with the company’s Bettergoods grocery line emerging as a standout success, CFO John David Rainey said at the recent Oppenheimer Consumer Growth & E-Commerce Conference.
Launched last year, Bettergoods now includes around 400 products and has already generated nearly $500 million in sales.
About 70% of the line’s items are priced under $5, and nearly 40% of customers return to make repeat purchases — a figure Rainey said reflects the line’s strong value and quality.
“Bettergoods has been a big success story for us,” Rainey noted, positioning the brand as a key piece of Walmart’s effort to broaden its grocery assortment with trendy, affordable items.
In addition to bolstering its grocery strategy, Walmart is leaning into convenience as a competitive edge. Same-day pharmacy delivery, now available at most locations, has driven “sticky” customer behaviour and encouraged larger basket sizes by bundling food, general merchandise, and pharmacy items into a single delivery.
“There’s no company that can do all three—[general merchandise], food, and pharmacy—at our scale,” Rainey said.
E-commerce delivery, particularly express delivery, is becoming a major growth engine. Walmart has nearly doubled its sub-three-hour delivery volumes year over year.
In recent weeks, express orders have made up as much as 40% of total deliveries, up from one-third in the last quarter.
“We continue to see that customers are willing to actually pay for that expedited delivery,” Rainey added, highlighting it as a core driver of Walmart+ membership appeal.
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