CHICAGO – Walmart is teaming up with Wild Oats for selling organic food, which is packaged and priced in-line with the conventional foods. It is at least 25% cheaper than some of the other organic brands. This way, Wal-Mart aims to make these organic foods easily accessible to the budget conscious shoppers.
In this fast-growing category, a bigger bet is being made, as the retailer announces to team with Wild Oats, offering at prices that is expected to undercut the brand name.
Wal-Mart is the world’s largest seller of food items, and the largest retailer in the U.S.A. This effort could have a ripple effect in the industry of groceries. One major factor and obstacle has been the cost of such organic food for many people as these products are priced high due to which, even those people who wish to buy, need to hold off. It is shown by Wal-Mart’s own internal research that about 91% of shoppers would prefer or consider to buy products from an organic brand that is affordable at the same time.
The Executive Vice President at Wal-Mart U.S, Jack Sinclair of grocery stated that they are planning to remove the premium associated with these organic groceries. For consumers, who prefer buying organic food products, the brand name Wild Oats is quite familiar. It is the same brand that Whole Foods, the chain of stores, had acquired in the year 2007. And now, Wild Oats is planning to re-launch as the line of foods that are focused specially on organic items with Wal-Mart as the only retailer nation-wide. These foods include chicken broth, tomato sauce, spices, and other organic items.
With its launch, the various items offered by Wild Oats will be retailed across almost two thousand stores and will reach ultimately more than four thousand Wal-Mart stores that are selling groceries all over the country.
These Wild Oats items will be sold on Walmart’s website gradually and picked up on the online platform later this summer. Wal-Mart has already sold before the launch of Wild Oats above 1,600 grocery items that are organic. These items include dairy products, and packaged branded goods.
Among the company’s total grocery business, even though the organic goods hold a small part, their sales have been growing at a real faster rate than the conventional food sales across all the categories.