Walmart is trying to lure wealthy shoppers to its website with a new online shop featuring upscale fashion brands sold by Lord & Taylor. Walmart.com's new fashion experience will consist of two shops: Everyday Brands and Premium Brands.
Walmart is competing with Amazon, which is poised to become the No. 1 apparel retailer in the USA later this year.
Walmart notes that customer browsing its online store over the next few weeks will see it start adding products from Lord & Taylor.
This is according to the New York Times, which reports that Lord & Taylor and Walmart are both referring to the new online store as a premium destination, reflecting both Lord & Taylor's need to reach a broader audience, and for Walmart to attract higher net worth individuals. "The new experience is aligned with how customers shop the category, with editorial elements that inspire customers to browse and buy, and has already generated positive customer response", said Denise Incandela, head of fashion, Walmart U.S. eCommerce. The two retailers formally announced the partnership last November. There will be thousands of styles available from the store and it will be updated regularly.
The new premium tab on Walmart.com is the latest in a series of moves by Walmart created to target wealthy shoppers, which the retail giant has historically ignored in favor of customers at the opposite end of the income spectrum. It has also rapidly expanded its online grocery service - a program that appeals to wealthier shoppers - with plans to make it available at more than 2,000 stores this year. "This is an example of how we are thinking differently and innovating", RJ Cilley, senior vice president of Lord & Taylor's digital division, said about Walmart, speaking on a call with members of the media.
The Lord & Taylor flagship store complements Walmart.com's everyday fashion assortment of millions of affordable, on-trend items.
The deal does offer special advantages for Walmart, which is generally considered a downmarket retail brand, both online and at its almost 12,000 stores worldwide. "This is a completely new model for us".