Walmart, long known for its “everyday low prices” mantra and as a place for basics, wants shoppers to think of it as a source for style and upscale fashion as it tries to reach more affluent customers.
The company is launching the Lord & Taylor store on its website in the coming weeks with more than 125 brands such as Lucky Brand, Vince Camuto and Tommy Bahama, reflecting its effort to broaden its customer base, drive growth and compete with Amazon.
It’s imperative for Walmart to expand beyond its low-income shoppers who are limited in how much they can spend. But the strategy is not without risks. The company needs to court higher-income shoppers while holding true to its core strategy.
Walmart store customers have a median household income of about $48,000, below the $56,000 of its website customers and the $85,000 median income of Amazon shoppers, said Craig Johnson, president of the retail group Customer Growth Partners.
Over the past several months, Walmart has been overhauling its website with an emphasis on fashion and home furnishings. The home goods section, for example, features collections for style categories like modern or bohemian, with layouts that echo the feel of a decorating magazine.