Walmart To Sell Organic Products At Better Prices
By Megan Zielinski, contributing writer
As Walmart research discovered that 91 percent of customers would buy affordable organic products if available, Walmart, the nation’s largest retailer and grocer, will be adding Wild Oats organic products on store shelves at reasonable prices, living up to their promise of “saving people money so they can live better.”
Wild Oats will supply Walmart with 90 percent of organic products, while the remaining 10 percent will meet standards of limited ingredients and additives. The Wild Oats label, owned by Yucaipa Companies, ensures that all products are made with the simplest ingredients, banning 125 unwanted processing components such as artificial colorings, sweeteners and other ingredients that have questionable reputations. Customers can choose from a wide variety of 100 items from the organic and natural selection including, cookies, pastas, snacks, bagged salads, milk, sauces, peanut butter, and more — all listed at prices similar to conventional groceries. By purchasing Wild Oats products over other reputable organic brands, Walmart shoppers can expect to save 25 percent more on their grocery bill. Wild Oats organic brand states, “Finally, organic goodness you can trust at a very palatable price.”
In order to accommodate to supplying a large mass of high quality products, Walmart will be implementing Wild Oats into 2,000 stores at once, only half of the total Walmart stores. The roll-out will occur over the next few months then gradually to all 4,000 stores. Through Walmart signing a long-term agreement with the private investment firm, it will allow for Yucaipa Companies to gather what is needed to meet such large capacities.
Organic farmers set the prices on products high due to the scarce amount of land and resources for organic farming and the hungry competition between purchasing retailers. Fast-growing consumer demand is evident, as sales in 2002 of organic foods were $8 billion compared to sales in 2012 at $29 billion, according to the Organic Trade Association. But the recent move of massive retailer, Walmart will likely expand the supply, bringing prices of organic products down — a win-win situation for consumers and retailers all around.