Wal-Mart to make organic food push


Wal-Mart (WMT) strikes a deal to sell Wild Oats brands to consumers at prices less than what organic food usually costs.

The company plans to roll out 100 Wild Oats packaged food products at roughly half of its stores over the next few months.

The pricing set by Wal-Mart on the organic food brands is expected to be lower than comparable items from Whole Foods Market (WFM).

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Comments (11)
  • moneymorality
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    Save Money. Live Better. WalMart continues to help the other 99%!
    10 Apr 2014, 08:45 AM Reply Like
  • wam350
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    Sounds like a good move. Hopefully, this will bring additional consumers to the stores.
    10 Apr 2014, 08:55 AM Reply Like
  • chopchop0
    , contributor
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    WFM killer. Long WMT
    10 Apr 2014, 09:25 AM Reply Like
  • katesr
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    This will benefit Wild Oats, Wal-Mart and the customers they serve who are looking for healthier choices. I do question whether existing customers will be willing to pay the premium vs. mass brands - nice PR move though. I don't see this hurting Whole Foods who serve a very different customer looking for a very different shopping experience.
    10 Apr 2014, 09:39 AM Reply Like
  • moneymorality
    , contributor
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    "I don't see this hurting Whole Foods who serve a very different customer looking for a very different shopping experience. "

     

    Partially correct, I believe, although the ability to buy more organic online with free delivery from WalMart at a fraction of the price of WFM will put a dent. I know it has in my household of 6.

     

    The real dent in WFM is coming from sell-off due to their valuations.
    11 Apr 2014, 10:30 AM Reply Like
  • samuel_liu
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    did you check out Amazon and its recent ventures?
    11 Apr 2014, 10:32 AM Reply Like
  • go to wealth
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    Stabilization and reduction of prices for organic and natural food will only come from wider distribution and lower margins that increase demand. WFM's historic industry gross margin is jealously always on the radar of other food retailers and lower prices will force the team in Austin to sharpen their pencils. Just a few basis points decline in WFM's margins and comps appears to start their stock price declining. The organic part of 365 could be WFM's focus to compete. Either way, WFM will put the GM vs comp numbers in a classic push-pull. They are a smart organization and should arise to the challenge. How food manufactures respond could be in-kind or just a big yawn.

     

    I went to a Wal-Mart recently for the first time in many years and the size took my breath away; I asked an employee for a map and taxi. It appears to me that the relative condensed size of WFM, Sprouts and TFM type stores will almost always attract the core specialty/organic grocery consumer for whom price is not the primary value. Can Wal-Mart's move bleed those few basis points; time will tell.
    10 Apr 2014, 09:46 AM Reply Like
  • moneymorality
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    Neighborhood Market coming to a location near you. Smaller format, supercenter prices. WalMart Express, even smaller, with organic, supercenter prices. WalMart is going on offense.
    11 Apr 2014, 10:27 AM Reply Like
  • GSeminole81
    , contributor
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    This is good news for the organic food rush as a whole, both WMT and WFM (and HAIN, etc).

     

    Dropped by a WMT for a quick grocery pick up the other day out of convenience. Wow, it was like shopping for the apocalypse. WFM does well because the families with the budget for organic do not want to navigate the mayhem of WMT and do not tolerate the lack of other non-organic healthy options. Now organic will meet all budgets. Wild Oats = access to organic for a broader base.

     

    However, the WFM base will also continue to grow as those income brackets can afford to get out of WMT and into a more favorable shopping experience. WMT is just now watering the grass roots for WFM.

     

    A side observation (unproven theory), the income bracket that regularly shops WFM, especially those fortunate enough to have Mom at home with the kids, those Mom’s want the LV/KORS purse and Lulu workout gear to be seen by others. It’s a fashion show within the peer group. That may be controversial but it’s the truth, and those mom’s will be doing that shopping for 18 years per child, and telling their friends about it.
    10 Apr 2014, 12:35 PM Reply Like
  • dhc
    , contributor
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    This will probably hurt other mass market grocery stores more than WFM, mainly because WFM is so sparsely located. I would love to have more access to organic items and this might be the push I need to abandon my regular store (Food Lion) in favor of WMT. (The nearest WFM is about a 2-hour drive for me.)
    10 Apr 2014, 12:37 PM Reply Like
  • evabrain
    , contributor
    Comments (39) | Send Message
     
    Wal-Mart Outlets, Inc. (WMT) announced the partnership with Wild Oats today whereby the world’s major retailer will stock 100 pantry items sourced from your latter, including normal canned vegetables, seasoning, and condiments, throughout 2, 000 of its stores throughout the US.In order to view more follow http://bit.ly/1iD6PPo
    11 Apr 2014, 08:29 AM Reply Like
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