Exclusive | Walmart Keeps Pushing Into Fashion With New Clothing Brand

Scenario Introduces New Women’s Clothing Brand Under $25

Walmart wants even its inexpensive women’s clothing to feel trendier. The retailer, which has been facing slowing growth lately, this week plans to introduce a new store brand of women’s clothing, bags and other accessories as part of its push to appeal to younger, trendier shoppers. Most of the new line, called Scenario, will cost less than $25, a price that aims to appeal to the discount shoppers who are the foundation of Walmart’s business.

Building a Wardrobe Beyond Basics

When Denise Incandela, now evp of fashion at Walmart, joined the company in 2017, its fashion department was literally sticking to the basics. We were mostly in the socks and underwear business, Incandela said. There was a lot of effort that was needed to make it a legit, credible [player]. In the years since, Walmart has progressed with building a new wardrobe, Incandela shared in an on-stage interview at the National Retail Federation’s Big Show last week.

When Incandela joined Walmart in 2017, the company was doing well with boosting traffic. But, she said, it wasn’t known for playing a credible role in fashion. It was important, she said, to change perception of Walmart fashion — beginning with a fresher assortment. Elevating Walmart’s fashion offerings started with the customer, Incandela said. The company found that when a typical Walmart customer shopped in Walmart, 60% of her spending was at an opening price point of $15 average unit retail, or less. However, when that customer left Walmart and shopped elsewhere, 80% of her spending was on higher AUR items. It show[ed] that we were not supporting our customers’ closet, Incandela said. We were covering the bottom of their closet.

Since 2020, Walmart has launched or relaunched 10 private apparel brands, including Scoop, Joyspun, Free Assembly, No Boundaries, Love & Sports, Sofía Jeans by Sofía Vergara and Weekend Academy. Its latest fashion line — Mills, by actress Millie Bobby Brown — debuted in 750 Walmart stores and on Walmart.com this month. Last year, Walmart began carrying thousands of pre-owned luxury handbags, jewelry and watches through a partnership with the resale platform Rebag. Walmart, whose tagline is Save money, live better, is typically known for groceries, gadgets and household essentials. But the company is trying to be a more trend-focused fashion player as it looks to compete with national brands, Amazon and department stores. In addition to hiring Incandela — who once launched Saks Fifth Avenue’s website and assumed her current role in 2021 — Walmart brought on celebrity fashion designer Brandon Maxwell as the creative director of Scoop and Free Assembly in 2021. All the while, Walmart has built brands with higher prices, partnered with influencers like Athena Roberts and Lori & Leslie on Instagram videos, and set up shop at New York Fashion Week. It has also overhauled its store displays to group items like handbags and installed QR codes that link to additional colors and sizes on its website.

Reaching Six-Figure Households and Younger Shoppers

John Furner Reports Growth in Third Quarter Apparel Sales

The strategy appears to be working, especially with higher-income households, executives shared. In November, Walmart revealed that its apparel business grew “over 5%” every month of its third quarter. We see more and more customers choosing Walmart for their source of fashion, incoming CEO John Furner said on a Nov. 20 earnings call. Over half (60%) of Walmart Fashion customers are women, and 40% belong to a $100K-plus household, per data shared at NRF. About a third (35%) are ages 25-44. Today, Walmart Fashion is home to six brands that are a billion dollars or bigger, Incandela said. We’re assertively taking market share, our total performance scores are improving dramatically, [and] we’re capturing new customers, she added. Our $100K-plus household income customers are increasing dramatically, because they’re looking at Walmart for the first time for fashion.

That’s a shopper who is Gen Z or a millennial, lives in an urban area, and has more discretionary income. While we were winning on price, price alone does not make value, Incandela said. We were not winning on quality, aesthetic and style, so that’s where we’ve been pursuing this opportunity. The store experience has also been important to refine, Incandela said. Today, Walmart has remodeled about 1,000 of its 4,000 stores to help fashion offerings “stand tall,” she shared. As part of this, Walmart created distinct areas for denim and handbags. It also eliminated some 10% of its racks to open up the space. We wanted the product to be the hero, Incandela said. Walmart’s fashion expansion covers three avenues: national brands, opening-price-point brands and what it calls elevated brands. Its national brands include names like Reebok, Wrangler and Michael Kors. Its OPP brands include Terra Sky, No Boundaries and Weekend Academy. Its elevated brands — or ones with AURs from $15-$40 — are Scoop, Free Assembly and Avia. Initially, Walmart received pushback for wanting to sell brands at higher prices, Incandela recalled.

Tween Launch Adds Weekend Academy to Store Shelves

Weekend Academy Launches New 65-Piece Collection for Tweens

Walmart introduced on Tuesday a new private fashion label designed specifically for tweens. Dubbed Weekend Academy, the inaugural 65-piece collection is now available both in Walmart stores and online, offering a wide range of fashion-forward clothing, accessories, and shoes for tween girls and boys. With nearly all pieces priced under $15 and many under $10, the brand is designed to deliver unbeatable value.

Trend-conscious tweens can shop looks like graphic tees, denim pieces, and mix-and-match fleece options made with sustainable materials. Walmart is also offering complete head-to-toe outfits for just $42, including items like a boxy graphic tee ($6.48), tiered ruffle skirt ($11.98), and zip-front boots ($22.98). The launch of Weekend Academy builds on Walmart’s ongoing push into fashion, expanding its in-house offerings. Customers can also shop a wide range of styles across popular brands like Reebok, Celebrity Pink, U.S. Polo Assn., Justice and private brands like Wonder Nation for kids and No Boundaries for Gen Z.