Where Walmart is Headed: 5 Takeaways for Emerging CPG Brands

Walmart is evolving its retail experience, expanding how customers shop, and creating new opportunities for consumer brands. At last month’s Walmart Grocery Run hosted by Startup CPG in Bentonville, Walmart leaders shared their perspective on the future of retail, alongside founders who have experienced firsthand what it takes to grow with the retailer.

Here are five takeaways for emerging CPG brands looking to grow with Walmart.

What's in This Article

• Walmart’s approach to omnichannel retail
• The growing role of Marketplace
• Quality, value, and product differentiation
• Innovation and retail partnerships
• Founder advice on scaling into Walmart
• A checklist for brands preparing to grow

1. Walmart is Investing in the Future of Omnichannel Retail

Walmart’s retail strategy increasingly centers on creating a more connected experience between its physical and digital businesses. In October, Walmart finally brought Walmart+ and Sam’s Club Plus together under one $120 annual membership, connecting two distinct shopping experiences, and giving customers access to both retailers through a single membership. More broadly, the move reflects Walmart’s continued investment in connecting its physical stores and clubs with its digital platforms, creating a more integrated shopping experience across its retail network.

As Walmart continues to connect these channels, brands need to consider how customers discover and purchase products both online and in stores, and how their retail strategies support each.

2. Marketplace is Expanding the Opportunity for Brands

Walmart Marketplace gives brands another way to reach Walmart customers, broadening the assortment beyond what shoppers find on store shelves. It also offers a different path to market for brands looking to introduce products and reach new audiences.

Walmart is also doubling down on AI investment to make product discovery more intuitive. Last year, they launched their AI-powered shopping assistant, Sparky, to help customers find products, compare options, synthesize reviews, and receive personalized recommendations. The tool reflects a broader shift toward more conversational, personalized shopping experiences that help customers move from discovery to purchase.

3. Quality and Value Go Hand in Hand

Walmart continues to look for ways to bring differentiated, higher-quality products to its customers at accessible price points. Walmart leaders repeatedly pointed to their partnership with Smash Kitchen as an example of this, discussing how they worked alongside the brand’s founders and investors to build a meaningful business around organic pantry staples, bringing a fresh perspective to an established category.

The partnership helped Walmart attract new, younger shoppers, which is an increasingly important focus for the retailer. According to Walmart data reported by Retail Brew, 40% of the new customers were Gen Z or Millennial shoppers, and 68% of purchases were happening in stores.

What's more, this shift is gaining attention across the CPG industry. Nate Rosen, Founder of Express Checkout (recently acquired by Morning Brew), recently suggested that Walmart may be the next Target for emerging consumer brands. Pointing to recent launches from buzzy, better-for-you brands across Walmart's stores, he noted that Walmart is increasingly becoming a first destination for brands, rather than a last stop.

4. Walmart Values Innovation and Strong Retail Partnerships

Innovation plays an important role in Walmart’s brand partnerships. The retailer repeatedly emphasized how it wants vendors to bring new ideas to the table, contributing differentiated products and fresh perspectives that keep its assortment relevant and competitive. Brands are expected to be active partners, bringing forward new ideas and opportunities that create value for both sides.

The same idea is found in Walmart’s private label strategy. Bettergoods, launched in 2024, was designed to fill a gap between traditional grocery staples and higher priced specialty products, bringing more trend-forward options to shoppers at accessible price points.

5. Founder Panel: Prepare for the Operational Demands of Retail Growth

During the founder panel, founders of various consumer brands shared lessons from scaling their businesses. One key takeaway: generating consumer demand is getting easier, but it’s only one part of the equation. On the other hand, meeting a retailer’s operational requirements takes careful planning around production, suppliers, and inventory.

The founders also emphasized pricing architecture and the importance of understanding the economics of each channel. As brands grow, they need to account for the working capital required to produce inventory and support larger retail volumes, often before receiving payment for sales.

What Walmart's Strategy Means for Growing Brands

Walmart’s plans create opportunities for brands that understand the retailer’s priorities and are prepared to support growth across channels. For founders considering Walmart, here are a few things to keep in mind:

• Understand Walmart’s customer: Know who your product serves, how it stands out from the existing assortment, and how it fits with Walmart’s focus on quality and value.
• Plan for omnichannel growth: Consider how your brand will perform across physical stores, ecommerce, and Marketplace, and what each channel requires operationally.
• Make discoverability a priority: Develop a clear value proposition and consider how shoppers will find your product in an increasingly broad assortment with more ways than ever to discover new products.
• Bring innovation to the partnership: Understand Walmart’s priorities and look for ways your brand can contribute to its assortment and evolving customer needs.
• Build a sound pricing strategy: Account for wholesale margins, promotions, production costs, and the differences between retail and direct-to-consumer economics.
• Prepare your operations: Evaluate production capacity, supplier lead times, and inventory needs before taking on larger, more demanding volumes.
• Plan your working capital: Understand when inventory expenses will come due, when you expect to receive payment, and how you’ll finance growth along the way.

Walmart continues to invest in its customers, its retail experience, and its relationships with brands. For founders, understanding the retailer’s direction and preparing for the demands of growth can help set the stage for a successful partnership.

Lunr Capital Can Fund Your Walmart Inventory

Scaling with Walmart takes the right capital and a partner who understands the demands of retail. Lunr Capital combines inventory financing with extensive retail expertise, helping emerging CPG brands fund production, fulfill retailer demand, and grow their businesses while keeping their equity.

How Lunr Capital Works

Our process is straightforward:

1. Apply and connect your financials
2. Our team reviews your opportunity and structures a deal fit for your company
3. Once approved, we send funds directly to your suppliers with repayment aligned to retailer payment schedules

Planning your next stage of retail growth? Apply here or reach out at hello@lunrcapital.com to learn how Lunr Capital can help fund your Walmart inventory.