The US retail landscape is constantly changing, with new stores and formats popping up. This can make it difficult for established consumer packaged goods (CPG) brands to decide where to allocate their spend.
Established CPG brands constantly seek to solidify their foothold in the lucrative US retail market. Brands need to be aware of the best retailers to sell through to maximize their sales and reach their target consumers—those that will offer the best opportunity for growth.
So, which are the best CPG retailers in the United States for established brands?
This blog post will look at the top three US retailers for established CPG brands and explore why they make a great fit. We'll also discuss what criteria we used to determine which retailers made the list.
Top 3 US Retailers for Established CPG Brands
Thanks to their consumer recall, large customer bases, and expansive store networks, these three US retailers have been known to set up established CPG brands for long-term success.
Walmart is the largest retailer in the world, with over 10,500 stores in 24 countries. In the US alone, Walmart has over 5,000 stores —one of Walmart's strongest selling points for established CPG brands.
Walmart is an excellent option for established CPG brands looking to expand their retail footprint because of its vast customer base. Walmart reaches 230 million consumers worldwide every week.
While it distributes 50 million products globally, established CPG brands that have already generated brand recall and loyalty will benefit from its vast distribution and consumer footprint.
Why choose Walmart:
Walmart is particularly strong in categories like food and beverage, health and wellness, and baby and toddler. Walmart is worth considering if your CPG brand falls into one of those and you have a strong brand recognition that you can compete among hundreds of brands within the same category.
Costco is another large retailer with a global reach. Costco has 842 warehouses all over the world, 579 of which are in the United States. And like Walmart, Costco is known for its distribution of household, food and beverage, health and wellness products.
Costco's unique selling point is its membership model. Costco requires customers to have a membership to shop at their warehouses, which means customers who shop at Costco are generally more affluent or have a higher basket size than those who shop at other retailers.
Why choose Costco:
Costco could be a good option if your CPG brand targets affluent consumers and you go after volume and large basket size.
Target is one of the most popular retail chains in the United States, with over 1,800 stores across the country. Target is known for its wide range of products and its competitive prices. It's solid in categories like apparel and home goods.
In recent years, Target has been expanding its grocery offerings and now offers same-day delivery and pick-up for groceries in select markets across the United States.
Why choose Target:
Some CPG brands choose to sell in Target because it offers both an in-store and online shopping experience with instant delivery and pick-up. This means that if your CPG brand is looking to reach consumers in both places while hinging on accessibility and convenience, then selling in Target could be the perfect option for you.
Factors to Consider When Choosing a Retailer for Established CPG Brands
When choosing a retailer for CPG brands, there are several factors to consider, including shopper demographics, shelf placement, reach and range, promotional capabilities, and level of support.
→ Shopper Demographics
Who's the target audience, and what are their preferences? What's the composition of its shoppers—millennials, Gen X, Gen Z? What is their basket size or share of wallet? Do they prefer to shop online or in brick-and-mortar stores?
→ Shelf Placement
Shelf placement is key to driving sales and visibility of your product. It's essential to ensure the retailer has available shelf space and is willing to grant prime real estate for your CPG product.
→ Reach and Range
How far does their network extend? What markets do they serve? Consider whether a retailer has enough locations in the areas where your target audience is located so that you can maximize your brand awareness and sales potential.
→ Promotional Capabilities
Different retailers have different promotional capabilities and requirements that may benefit established CPG brands. The retailers you choose should have a promotion strategy in place so you can effectively boost sales. How can you partner with the retailer to develop a promotional strategy that drives both trial and repurchase of your products? Could loyalty programs or other promotions incentivize shoppers to buy your product?
→ Customer and Technical Support
What is the level of support that the retailer offers? Do they provide any additional services to help you promote your CPG brand? Do they have excellent customer service?
Helio Can Identify the Best Retailer for your CPG Brand
The best way to choose the right retailer for your CPG brand is to partner with a solid intelligence platform like Helio. By leveraging its data-driven approach and comprehensive insights, you can ensure your product is in the right place at the right time.
Thanks to Helio’s retail market research, you can see which retailers your competitors are in and a snapshot of the # of retail doors, their revenue range and the brand’s retail velocity relative to category and competitor benchmarks.
With the power of data and insights, Helio will help you maximize sales potential and boost your brand awareness in your target markets.
Request a demo today to learn how Helio can help you identify the best US retailer for your brand.