Walmart has eye on premium diaper market

Markets Associated Press

Walmart has its eye on the premium diaper market, as more people are getting automatic shipments from online sellers and the company that owns Babies R Us has filed for bankruptcy.

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The nation's largest retailer is launching premium diapers as part of Walmart's relaunch of its 20-year-old Parent's Choice brand with new or refreshed products like bedding, baby lotion and sippy cups. The Parent's Choice diapers, which are being priced starting at $7.24 for a pack of 35, are just hitting some Walmart stores now and will be online next month. The diaper offers up to 12 hours of dryness, and its lining is made of highly absorbent materials including pulp harvested from sustainably managed forests.

Diapers are key drivers for customer traffic because parents buy them frequently. Amazon offers automatic shipments that parents find convenient. Another huge player is Babies R Us, which may be vulnerable after its parent company Toys R Us filed for Chapter 11 this month. A Babies R Us executive interviewed earlier this month was mum about whether it would offer a diaper subscription.