Walmart offers many different private-label brands including Sam's Choice, Equate, and Ol' Roy. Overall, what is the primary reason that Walmart would offer these and other private-label brands?
A) increased profit margin
B) reduced marketing costs
C) lowers the risk of a product failure
D) lower inventory costs
E) enhances Walmart's image

Question

Quizplus · Accepted Answer

Private-label brands typically offer higher profit margins to retailers like Walmart compared to selling national brands. This is because they can control production costs and set prices without having to accommodate the marketing and promotional expenses that are built into the prices of national brands.

Walmart Offers Many Different Private-Label Brands Including Sam's Choice, Equate