The high cost of organic foods has been the top reason for consumers not purchasing them. They won't have that excuse anymore, however. Walmart shoppers will soon have more choices when it comes to healthy food at budget prices. The grocery giant is aiming to make organic foods more affordable for budget-conscious buyers. They have teamed up with Wild Oats to sell packaged organic foods at approximately 25 percent less than the average cost of organic foods. They are able to use their buying power to secure lower prices. Walmart found that a whopping 91 percent of their customers would consider buying organic products if they were easier to afford.
Wild Oats, who previously offered products through Whole Foods, is relaunching with a line of organics exclusive to Walmart. Canned goods and spices are among the products expected to hit their shelves soon. They are expected to be available in Walmart stores in Chicago by the end of April, with nationwide availability soon after.
Walmart is expanding it's line of organic product line to meet the growing demand. Consumers want healthier food option, free of dyes, additives, pesticides and other toxins. The latest data, according to the Organic Trade Association, is from 2012 and shows that annual organic sales in the U.S. reached $31.5 billion. That number continues to grow. There is an increased interest in non-GMO foods and Walmart hopes to cater to that, not only by partnering with Wild Oaks, but by also grouping all organic items together for easier access.
The partnership between Walmart and Wild Oats could be a game changer for the industry. They are seeking to eliminate the middle men in order to cut prices. They are changing the way organics are grown and sold. Other supermarkets may have to find alternatives, as well, in order to lower prices on organic foods in order to remain competitive. Target has already announced it's plan for a Simply Balanced organic and natural product line.
After experiencing a recent slump in sales, Walmart is hoping to make up the difference by rolling out the new line of organic products at a reduced cost. The new product line, Wild Oats Marketplace Organic, follows USDA guidelines and is certified organic. Wild Oats will not be selling their organic products exclusively to Walmart, but together, the companies aim to offer organics at an affordable price.
Sources:
Chicago Tribune Market WatchFox News
