Walmart (WMT) is doing everything it can to prove to the world it can bake up more than loaves of cheap, boring Italian bread. The most visible spurt of innovation comes in the dessert category, explained senior category director for Walmart's bakery operations Laura Rush in an interview. The world's largest retailer is fresh off an early September debut of five new desserts in concert with Grammy-winning artist Patti Labelle: berry cobbler, apple cobbler, peach cobbler, apple pecan cake and sweet potato loaf. More recently, it debuted French brioche sliced bread, and an enhanced crumb cake that has frosting and an apple pie that is 75% apples as opposed a mixture of apples and slurry. Rush pointed out that more than half of Walmart's bakery items are now prepared in store. TheStreet's Brian Sozzi reports.