Walmart embarks on ‘style tour’ to prove it is a fashion destination, with two stops in L.A.
Zara. Shein. Walmart?
In its latest bid to be seen as an affordable fashion destination, Walmart is hitting the road to prove that it has more to offer beyond household essentials and grocery staples.
The mega-retailer has embarked on a Walmart Style Tour, bringing its collection of fall styles directly to consumers at more than 40 shopping centers, festivals and public spaces nationwide.
“Walmart is on a mission to democratize fashion,” the company said this month in a news release announcing the tour, which began in Chicago and will make its way around the country through October, with two pop-ups in Los Angeles.
The road show is part of Walmart’s recent efforts to reposition itself as a stylish option and change public perception of the brand, which historically has not been top of mind for clothing shoppers. The discount chain has harbored fashion ambitions for years, hoping to capture market share in a retail era dominated by fast fashion — runway-inspired looks manufactured quickly and sold cheaply — with an improved selection of quality apparel that is attractive but still budget-friendly.
“Fashion basics — they’re not trying to get too far afield, but be on trend,” said Joe Feldman, senior managing director at Telsey Advisory Group. “You don’t want to go too fashion-forward where you end up having to regularly mark down goods because it’s hit or miss, versus having slightly more stylish silhouettes for jeans or T-shirts or whatever it may be.”
For years, retailers such as Costco and Trader Joe’s have built followings for their store-branded items. On Tuesday, Walmart announced a big push into the same space.
It’s a “very clever” approach, Feldman said, that stops short of “taking big bets on outlandish designs and styles.”
“I don’t look to it to be this huge revenue driver,” he said. “It’s more about brand-building and being in front of a broader audience than just the core consumer walking in every day.”
Walmart’s first L.A. tour stop was Friday at Ovation Hollywood (formerly known as the Hollywood & Highland shopping and entertainment complex). The second is scheduled for Sept. 21 at the Original Farmers Market next to the Grove.
Besides selling clothes, the pop-ups include merch giveaways and tips from on-site stylists. There are also experiences such as free lipstick engraving and personalized color analysis; the TikTok trend helps people identify which shades and tones best complement their natural features.
The global fashion industry was estimated to be worth $1.7 trillion last year, according to consulting firm McKinsey & Co. Clothing prices have plummeted as shoppers flock to fast-fashion sellers: The firm reported in December that the average price of a product is $14 on Shein, $26 at H&M and $34 at Zara. That has led to a cycle of consumers buying new clothes frequently only to discard them a short while later.
Walmart, the country’s largest retailer by revenue, has been in transformation mode over the last decade. Analysts lauded the retailer for heavily investing in technology to become more efficient, remodeling stores to look more modern and adopting a nimble, experimental mindset. Those initiatives have paid off, with Walmart making inroads among higher-income customers.
“They’re a lot more focused on their assortment and keeping things new and relevant to the consumer, versus the Walmart of 10 years ago,” said Steven Shemesh, an analyst at RBC Capital Markets.
The Bentonville, Ark., company reported revenue of $648 billion in its last fiscal year, up 6% from the year before. It operates more than 10,500 stores in 19 countries, including its Sam’s Club locations.
“The strategy overall, I would say, is working,” Shemesh said. “A lot of people who previously had written Walmart off come into the stores and [have] a much different experience than they had in the past.”
The imminent introduction of Walmart Inc.’s new subscription program took investors by surprise this week, sending the retailer’s shares up the most in almost four months.
Like many retailers, Walmart has turned to social media influencers to help get the word out about its new styles. Two years ago, the company launched a platform called Walmart Creator, an affiliate program that enables creators to monetize shoppable products. Creators who sign up share their recommendations and earn commissions on sales they refer.
Walmart even made an appearance at New York Fashion Week this month, co-hosting a pop-up showroom of clothing designed for the chain by Brandon Maxwell. The big-box retailer announced in 2021 that it had tapped the fashion designer to be creative director of its private-label brands Free Assembly and Scoop.
Walmart has also leaned into that partnership online. On its website — where shoppers can browse by “it list trends,” such as “denim on denim,” “shades of red” and “utility chic” — there’s a landing page of Maxwell’s favorite Free Assembly picks, including a men’s faux sherpa jacket for $30 and a women’s oversized teddy coat for $65.
“It still is Walmart, and it still is value, so it’s not going to be super high-end apparel,” Shemesh said. “At the end of the day, they still do cater to a price-sensitive consumer.”
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