Winning Walmart’s Shelf: AI Strategies from the Latest Earnings Report
Walmart closed out fiscal year 2024 with strong revenue growth, hitting $648.1 billion, a 6.0% increase year-over-year, according to its latest report
For food CPG brands, these numbers provide a clear roadmap: winning Walmart’s shelf in 2025 requires a strong omnichannel presence, optimized pricing, and AI-powered retail execution.
What this means for food CPG marketers
Targeting higher-income consumers
Walmart’s earnings report highlights a shift: higher-income households are spending more at Walmart
Grocery and health trends driving growth
Grocery remains Walmart’s strongest category, driving 4.0% same-store sales growth
The role of AI in competitive positioning
Success at Walmart in 2025 will require more than great packaging and promotions. AI-driven insights are becoming the most effective way to optimize product placement, pricing, and marketing strategies. Brands leveraging AI-powered retail strategy tools can predict demand, adjust to pricing trends, and optimize Walmart Connect ad performance for higher conversions.
Staying on top of trends—no matter what’s happening
Seasonal trends can shift fast, but AI helps CPGs stay ahead—whether it’s Christmas, Valentine’s Day, or a surprise viral food trend. Consumers expect timely, relevant products, and the brands that deliver win prime shelf space.
Take Valentine’s Day—a key moment for indulgent desserts. With AI-generated recipes, brands can anticipate demand for trending ingredients like chocolate, berries, or plant-based alternatives. Tastewise’s AI Recipe Creator ensures that CPGs have the right products stocked at the right time—making it as simple as getting your chocolate cake ingredients on Walmart’s shelves ahead of Valentine’s Day.
Looking for inspiration? Check out our Valentine’s Day Chocolate Cake—an AI-generated recipe that reflects real consumer cravings and seasonal trends.
With AI, winning Walmart’s shelf isn’t just about responding to demand—it’s about predicting it before your competitors do.
AI-powered strategies to win Walmart’s shelf
Using AI to identify emerging trends
Walmart’s grocery sales show a clear trend: consumers are seeking convenience, value, and health-conscious options. AI-driven tools can help CPG brands analyze real-time purchase behaviors to predict the next big trend before it scales.
Tastewise’s AI forecasts in our 2025 Food Trends report that bold, cost-conscious flavors will dominate in 2025. Filipino cuisine and Asian street food are leading the charge, driven by Gen Z’s demand for affordable yet indulgent meals and the return to in-office work.
Asian street food meets office snacks
As 75% of U.S. workers return to offices, the demand for convenient yet indulgent lunches has risen 38% since 2022. Filipino and Asian-inspired grab-and-go options like onigiri, bao buns, and tteokbokki are reshaping how Americans eat at work
Gen Z and Filipino cuisine
Gen Z’s love for affordable, flavorful experiences has fueled a 50% YoY rise in interest for indulgent-yet-budget-friendly foods. Filipino coffees like coffee jelly sago and pandan iced coffee are trending, offering a low-cost way to explore global flavors
Flavor-first affordability
Consumers are talking about affordable food 19% more this year, normalizing cost-saving discussions. AI can track these shifts in real time, helping CPG brands anticipate what consumers will crave next
How does this help CPGs? AI-driven insights like these predict emerging flavor categories before they scale. CPG brands that adapt their Walmart Food CPG Strategy to these trends—especially in frozen, ready-to-eat, and snackable formats—will increase their chances of shelf success.
AI for competitive pricing & demand forecasting
Walmart’s commitment to keeping prices low means CPG brands must adopt data-driven pricing strategies. AI-powered tools can analyze Walmart’s historical pricing trends, competitor price movements, and seasonal demand shifts, allowing brands to dynamically adjust prices while staying profitable.
Predictive analytics can also forecast demand fluctuations, ensuring brands maintain optimal stock levels. Walmart’s focus on inventory efficiency means out-of-stock products risk losing shelf space—AI ensures supply chain agility to prevent this.
Walmart Connect: AI-optimized retail media strategies
With Walmart Connect ad sales growing 22% in the U.S.
By using AI to refine audience targeting and creative execution, brands can increase visibility in Walmart’s search and in-store displays, ensuring higher chances of CPG success at Walmart.
Leveraging Walmart’s digital & physical expansion
Enhancing in-store & online presence
With Walmart’s omnichannel strategy accelerating, a strong eCommerce presence is non-negotiable. Product pages must be optimized with high-quality images, keyword-rich descriptions, and AI-driven recommendations to increase search rankings and conversion rates.
Pro tip: Ensure that online listings mirror in-store promotions. If a product is marketed as a value bundle in stores, it should be promoted the same way online to maintain consistent consumer perception.
AI-driven supply chain optimization
Walmart’s supply chain efficiency is a competitive advantage, but it requires suppliers to meet strict availability requirements. AI-powered demand forecasting ensures that inventory stays in sync with store-level demand, reducing overstocking while preventing out-of-stock situations that could cost shelf space.
International and Omnichannel execution for 2025
Internationally, Walmart saw 13.0% growth in net sales, with particularly strong performance in Flipkart, Walmex, and China. E-commerce sales increased by 44% in these regions. While this metric may not directly influence U.S.-based food CPGs, it signals Walmart’s focus on omnichannel growth globally. Marketers with products in international markets should also consider Walmart’s global supply chain and local market nuances when positioning products for success.
Consumers expect a seamless experience between Walmart’s in-store and digital offerings. AI helps CPG brands align promotions, optimize in-store placements, and personalize digital ads—ensuring a consistent brand presence across all channels.
FAQs
How can AI help food CPGs compete at Walmart?
AI enhances product development, pricing, and advertising strategies by analyzing real-time data from Walmart sales, competitor movements, and consumer trends. It allows brands to predict demand, optimize promotions, and drive higher conversions on Walmart Connect.
What are Walmart’s key growth priorities in 2025?
Walmart is focused on eCommerce, higher-income shoppers, advertising growth, and supply chain efficiency. CPGs that align with these priorities—through value-driven products, AI-powered pricing, and omnichannel execution—will have a better chance of securing and winning Walmart’s shelf.
How does Walmart Connect impact shelf space competition?
With Walmart Connect growing 22% in the U.S., digital ad visibility is now directly influencing in-store purchases. Brands investing in AI-powered retail strategy tools can optimize ad targeting, ensuring they reach the right shoppers both online and in-store.
Final thoughts
Walmart earnings for CPGs provide a clear path for food brands looking to secure shelf space in 2025. Looking ahead to FY25, Walmart expects net sales growth of 3.0% to 4.0% and operating income growth of 4% to 6%. The winners will be those who combine AI-driven consumer insights with strategic execution—from pricing and supply chain optimization to Walmart Connect advertising.
The competition for Walmart Food CPG Strategy dominance is fierce, but with AI-powered solutions, brands can stay ahead and win the shelf at Walmart in 2025.