Walmart hikes house brand food prices, rewards shareholders

[Freethinker65]

28. I assume Reich has proof, but in Walmart's defense...

Perhaps Walmart has a business model in which their "Great Value" store brand is to sell for not less than a certain percentage of the National Brand Price? This is to ensure enough cost savings for the consumer, and budget consumer, to buy the store brand, but not enough difference from dissuading too many from buying the National Brand. Walmart needs to be able to control inventory and shelf space, and yes, even Walmart, has an interest in keeping major large producers happy.

I just bought some Equate (Walmart generic equivalent) personal care items that I have had luck with. My cost savings was worth it compared to National brands. One item, had been almost always sold out...leading me to frustration in having to buy the National Brand. When I would find the generic, because of the current sizable price difference I felt I might as well buy multiples. This depleted the shelf faster than had it been priced closer to the National Brand.

So yes, stores are profiting by increasing prices, but is the reason some store brand generics are going up in price 100% nefarious? Perhaps not.