Target and Walmart bet big on two new brands in 2024. The results could not have been better

Private-label brands thrived in 2024, with nearly every American household buying at least one private-label grocery item, according to a report by data analysts. Walmart and Target sure had a good strategy.

In-house brands, the new favorites in our shopping basket

This report crowned Walmart’s Better goods and Targets Negotiable as the year’s two fastest growing private label brands. Launched in 2024, both brands saw their sales volume increase by over 200%. They were followed by Target’s Bullseye’s Playgroundwhich grew 109%, Aldi’s Choceur at 83%, and Dollar Tree’s B Clean of 75%.

The report also noted that Aldi held the top spot for private label dominance, with 80% of its total sales coming from these products. Trader Joe’s was second with 70%, followed by HEB and Sam’s Club, both with 34%, Costco with 35% and Walmart with 31%. Lowe’s was next at 30%, followed by Dollar Tree at 29%, Kroger at 28% and both Home Depot and Target at 25%. Amazon was behind with just 3%.

Forty-two percent of shoppers in 2024 said they turned to private label products to save money. While 59% of consumers said private-label brands offer “above-average value for their price,” only 27% believed they matched the quality of name-brand products.

Walmart’s #1 position as the most affordable retailer

Despite its widespread success, Walmart continues to stand out as the retailer with the best prices, according to independent reports. Recent research crowns Walmart as the most affordable grocery store in the U.S. Surprisingly, even Aldi—famous for its discount prices and slim profit margins—came in second. Costco, known for its bulk deals, came in third.

To determine which grocery store offered the lowest prices, reporters compiled a consistent shopping list and compared costs across major chains, including Aldi, Costco, Kroger, Target and Walmart. To ensure fairness, they calculated the price of the same cart in 49 different cities using the Instacart app.

The study analyzed the prices of 118 store brand items and compared different product lines available at each retailer. Analysts recreated the same shopping cart in each store to draw their conclusions. The study found that Walmart’s Great value brand lived up to its name, often ranking in the most affordable 20% of store brand products.

How can Walmart offer such great prices?

Thanks to its economies of scale, Walmart has significant buying power, which allows them to negotiate better deals with suppliers. While this can create challenges for smaller businesses, Walmart customers benefit from the reduced operating costs.

The retailer also utilizes advanced technology to monitor inventory, ensuring they neither overstock nor understock. This approach helps avoid unnecessary inventory costs and minimizes the risk of running out of items. In addition, Walmart has made significant investments in self-checkout systems to combat retail theft, a major contributor to lost revenue.

Dealworthy: Target’s new affordable private label

To strengthen its pricing strategy, Target launched Negotiablea private label brand designed to deliver budget-friendly everyday items. The line was introduced in February 2024 and includes nearly 400 items across categories such as electronics, homeware and beauty. Most products are priced under $10, with some starting at less than a dollar.

Negotiable‘s offer includes practical items such as phone chargers, toothbrushes, paper plates and detergent, giving customers significant savings compared to other brands. This initiative not only helps Target stand out from rivals like Walmart and Aldi, but also resonates with cost-conscious consumers.

The launch follows a challenging 2023 for Target, in which the retailer reported a 3.7% decline in comparable sales. Sales of nonessential items like home apparel and technology declined, but many customers continued to rely on Target for essential items. With the launch of Dealworthy and lower prices, Target aims to rebuild its momentum and regain consumer confidence.

According to Target’s executives, their new brand Negotiable is not only about affordability, but a perfect balance between quality and good prices. The red-and-white dealer knows that their customers prioritize value above all else. With Negotiable Target took a risk to bring back long-lost customers who had gone to other retailers, and even new customers. So far, this move has proven to be lucrative.