In an update from last week's earnings report from Walmart's CEO Doug McMillan, the retailer is seeing huge success from its private brand business.
"We prefer to sell brands for less, but we're also improving our private brands, and they're growing faster than our overall sales," said McMillan. "18 of them do more than $1 billion in sales and our largest private brand Great Value does more than $27 billion a year globally."
Mike Troy of Retail Leaderreported on the retailer's earning call, also highlighting that Walmart's e-commerce business grew by 37% in the fourth quarter, and groceries and private label penetration helped push the retailer to gain nearly 2% in total U.S. same-store sales lift.
According to presentation materials released by Walmart, “higher penetration of private brands, along with our expanded omnichannel offering,” contributed to overall stronger food and consumables sales at Walmart.
“Grocery sales on a two-year stacked basis were among the best in the past 10 years,” the earnings report said.
Total sales at Walmart’s U.S. stores division increased 1.9% to $92.3 billion and the division’s full year sales increased 2.8% to $341 billion, the company announced Feb. 18, ahead of an investor conference in New York.