Walmart Aims to Take On Amazon With Trendier Apparel

Walmart is launching a new line of clothing under its Scenario brand to attract younger shoppers and compete with Amazon, according to a report in The Wall Street Journal (WSJ). Most of the items will cost under $25, as the company aims to appeal to its core of discount shoppers and regain market share from Amazon, the WSJ reported on August 23.

While Walmart has traditionally sold lower-priced items such as jeans, it has been gradually shifting its inventory to include higher-cost items in recent years, the WSJ said. Denise Incandela, who became executive vice president of fashion for Walmart U.S. in 2021, acknowledged that the company had not been servicing all the closet needs of its customers. She cited data showing that while Walmart was known for its "extraordinary value," it was not credited for "style and quality" by shoppers.

Walmart's fashion initiatives under Incandela have been ongoing for almost a decade, according to the report. In a presentation to executives, Incandela pointed out that 80% of the money spent by Walmart shoppers on apparel was at higher-priced retailers, not Walmart. This suggested that consumers were willing to pay more for fashion but were not doing so at Walmart.

In the past five years, more of the money spent by Walmart customers on clothing there has been for items priced at $25 or higher, WSJ cited internal company documents as saying.

The news of the new clothing line comes after Walmart's quarterly earnings call, where management admitted that customers were facing increased pressure, particularly due to higher fuel prices that forced some shoppers to make more visible spending choices in June. Walmart CEO John Furner said that customers are still feeling some pressure but are looking for value, convenience, and fast delivery.

However, Walmart's same-store sales grew by only 2.6% in the latest quarter, the slowest pace seen in nearly six years, according to the WSJ.