The company is launching a new in-house clothing brand called Free Assembly. The 55 part collection ranges from $ 9 to. 45. And will sell online and at 250 Walmart (WMT)Stores.
In a blog post, the company said its goal is to offer “high-quality pieces” at low prices. Examples include a $ 45 structured blazer and a $ 40 fishtail parka. Some items are made from organic cotton.
Walmart’s (WMT) The primary business is grocery, which accounts for more than half of its sales. But grocery is a reputable low-margin business. So Walmart has been making inroads into its clothing and home appliance offerings in recent years.
In 2018, it launched four new private-label lines: Time and True for women, plus size Terra and Sky, Wonder Nation for children and George for men.
Wear less than one-tenth of Walmart sales, compared to about 20% Target (T.G.T.), According to the filing. But clothing is more profitable than groceries. It is more profitable to sell private label brands than a brand name for a private lamart.
So Mart Mart hopes that when customers come to the stores to buy groceries, they will also choose new shoes or jeans.
“When you drive traffic [groceries] “And then you can get customers to buy a home and clothing … which helps a lot with margins,” Walmart finance chief Brett Biggs said at an investor conference this spring.
Competitors have also found success in their own private-label clothing brands, including Target. Amazon (AMZN) And also Costco (Costs).
Most recently, Walmart made its first foray into the clothing retailer market in collaboration with ThreadUp, which will add fashion brands sold at Walmart such as Coach, Nike, Calvin Klein and Michael Kors.
ArticleCNN Business’ Nathaniel Meyersoh contributed to this article.
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