Walmart (NYSE:WMT) launched a private-label grocery brand called ‘Bettergoods’ on Tuesday and also announced the closure of its health centers. Bettergoods will offer a line of trend-driven and affordable chef-inspired foods, with most items priced under $5. The brand will feature products across various categories, including frozen foods, dairy, and snacks, with prices ranging from under $2 to under $15.
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The launch of this brand could be the retailer’s attempt to attract more shoppers. As inflation spikes, customers have pulled back on discretionary spending. However, Walmart’s low prices of grocery items have attracted higher-income grocery shoppers who have become conscious of their shopping budgets.
Walmart’s Revenue Breakdown
In FY24, Walmart’s net sales for groceries in the U.S. rose by around 7% year over year to $264.2 billion. As the largest grocer in the U.S. by revenue, Walmart generated nearly 60% of its U.S. sales from groceries in the last fiscal year.
Walmart Is Closing its Health Centers
Additionally, Walmart announced the closure of its 51 health centers across five states in the U.S. due to a lack of profitability. The retailer cited challenges with reimbursement from insurers and other payers, as well as rising operating costs. Walmart added that all employees at these centers can be transferred to any other Walmart or Sam’s Club locations.
Walmart’s health centers offer a variety of healthcare services, including primary and urgent care under one roof.
Is Walmart Stock a Buy or Hold?
Analysts remain bullish about WMT stock, with a Strong Buy consensus rating based on 25 Buys and three Holds. Over the past year, WMT has increased by more than 18%, and the average WMT price target of $65.97 implies an upside potential of 9.7% from current levels
