Walmart's fashion business has grown to an impressive $30 billion, marking a substantial increase in its apparel sector. The retail giant has been investing in a more upscale presentation of its clothing in stores and has expanded its offerings to include more dresses and work-appropriate attire, moving beyond its traditional string sweatpants. This strategy is paying off, with Walmart outperforming competitors like Target, Macy’s, and Kohl’s in growth. Notably, 75% of Walmart's growth is now coming from households with an income of $100,000 or more, indicating a successful shift in its customer base.
Denise Incandela, Executive Vice President of Fashion for Walmart U.S., highlighted that the company is only 10% of the way through her planned fashion transformation. Walmart is actively seeking to capture a broader market, particularly shoppers who previously left Walmart to purchase higher-priced fashion items elsewhere. The company believes that by offering nicer, yet still affordable, clothing, it can encourage shoppers to spend more time and money within its stores. Coresight Research estimates that Walmart U.S. sold $29.5 billion worth of clothes last year, underscoring the scale of its fashion operations.
Walmart has launched or relaunched 10 private apparel brands since 2020, including Scoop, Joyspun, Free Assembly, No Boundaries, Love & Sports, Sofía Jeans by Sofía Vergara, and Weekend Academy. Its newest line, Mills by Millie Bobby Brown, debuted in 750 stores and online. The strategy is proving effective, with the apparel business growing over 5% each month in its third quarter. Over 60% of Walmart Fashion customers are women, and 40% come from households earning over $100,000. Incandela noted that Walmart Fashion now boasts "six brands that are a billion dollars or bigger," and the company is aggressively gaining market share, particularly among higher-income customers who are now considering Walmart for fashion for the first time. The company is focusing on national brands like Reebok and Michael Kors, opening-price-point brands such as Terra Sky and No Boundaries, and "elevated brands" like Scoop and Free Assembly with average unit retail prices from $15-$40. It also revamped its No Boundaries brand to target Gen Z, moving away from its previous older demographic appeal.
