The news: Walmart introduced a private label for tweens, Weekend Academy, just in time for the back-to-school shopping season.

• Most items in the brand’s “on-trend” assortment cost less than $15, with many under $10.
• A head-to-toe outfit, including shoes, could cost parents as little as $42, the retailer said—sharpening Walmart’s appeal to budget-seeking shoppers.

The trend: Walmart’s private labels are becoming powerhouses in their own right, helping to win over wealthier shoppers as well as steal share from rivals.

• Walmart’s store brands “outperformed” in Q1, CFO John David Rainey said on the company’s earnings call—particularly in the grocery sector, where penetration rose 60 basis points YoY.
• Its premium Bettergoods label is a resounding success story. The brand has generated almost $500 million in sales since launching last year, Rainey said in early June, thanks to its low price point (70% of items retail for less than $5) and enticing array of items, which includes items like beef bulgogi empanadas and tiramisu gelato.

Overall, Walmart’s more trend-focused private label assortment has helped it profit from Target’s decline. Roughly half of customers who churned from Target made their next purchase at Walmart, while 30% made their next three purchases there, according to Indagari data cited by CNBC.

Our take: As Target proved, retailers that use their private labels to deliver on-trend products at affordable prices can win big with shoppers. While Walmart hasn’t always been known as a destination for stylish products, its growing investments in its store brands could help it capitalize on Target’s fading “Tarzhay” magic and become a go-to for value- and design-conscious shoppers.

Go further: Read our report on Private Label Brands 2025.