Private label brands thrived in 2024, with nearly every U.S. household purchasing at least one private label grocery item, according to a report from data analysts. Walmart and Target certainly had a good strategy.

Own brands, the new favorites in our shopping cart

This report crowned Walmart’s Bettergoods and targets Dealworthy as the two fastest growing retail brands of the year. Sales volumes for both brands launched in 2024 increased by over 200%. They were followed by targets Bullseye’s Playgroundwhich grew by 109%, Aldi’s Choceur at 83% and Dollar Tree’s B Clean at 75%.

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

In 2024, 42 percent of shoppers said they chose private label items to save money. While 59% of consumers said private label brands offer “above average value,” only 27% felt they could match the quality of branded products.

Walmart’s #1 position as the cheapest retailer

According to independent reports, despite its great success, Walmart continues to be the retailer with the best prices. Recent research has named Walmart the cheapest grocery store in the United States. Surprisingly, even Aldi – known for its cheap prices and low profit margins – came in second place. Costco, known for its big deals, took third place.

To find out which grocery store offered the lowest prices, reporters created a consistent shopping list and compared the costs of major chains, including Aldi, Costco, Kroger, Target and Walmart. To ensure fairness, they used the Instacart app to calculate the cost of the same cart in 49 different cities.

The study analyzed the prices of 118 private label items and compared the different product lines available at each retailer. To draw their conclusions, the analysts recreated the same shopping cart in each store. The investigation revealed that Walmart Great value for money The brand lived up to its name and was often among the cheapest 20% of private label products.

How can Walmart offer such good prices?

Thanks to its economies of scale, Walmart has significant purchasing power that allows it to negotiate better deals with suppliers. While this could pose challenges for smaller businesses, Walmart customers benefit from lower operating costs.

The retailer also uses advanced technology to monitor inventory and ensure there is neither too much nor too little in stock. This approach helps avoid unnecessary storage costs and minimizes the risk of running out of items. Additionally, Walmart has made significant investments in self-checkout systems to combat retail theft, which is a major contributor to lost sales.

Dealworthy: Target’s new affordable retail brand

To strengthen its pricing strategy, Target launched Dealworthya private label brand designed to provide affordable everyday items. Launched in February 2024, the line includes nearly 400 items in categories such as electronics, home essentials and beauty. Most products cost less than $10, with some starting at less than a dollar.

DealworthyThe range includes practical items such as phone chargers, toothbrushes, paper plates and laundry detergent, allowing shoppers to make significant savings compared to other brands. This initiative not only helps Target stand out from competitors like Walmart and Aldi, but it 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 non-essential items like home clothing and technology fell, but many customers continued to rely on Target for essential goods. With the launch of Dealworthy and lower prices, Target aims to rebuild its momentum and regain consumer trust.

According to Target executives, their new brand is Dealworthy It’s not just about affordability, but about the perfect balance between quality and good prices. The red and white retailer knows that value comes first for its customers. With Dealworthy Target took the risk of bringing back long-lost shoppers who had gone to other retailers and even new shoppers. For now, this move has actually proven to be lucrative.