Brandon Maxwell's debut spring collection is being pursued by Walmart for fashion prominence.

• Brandon Maxwell, the fashion designer hired by Walmart as creative director for two of its elevated apparel brands, Free Assembly and Scoop, is debuting the first spring collections.
• Walmart is now a destination for affordable fashion, not just socks, T-shirts, and other basics, with its new clothing and accessories collections.
• In the fiscal fourth quarter, apparel was identified as a strong sales category by the big-box retailer.

In preparation for spring, is introducing fashionable clothing options to attract budget-conscious consumers looking for stylish apparel.

Walmart's exclusive apparel brands, Free Assembly and Scoop, are showcasing their spring collections, which were designed by Brandon Maxwell, a renowned fashion designer and "Project Runway" judge. Maxwell, who has his own luxury brand and a history of dressing high-profile women, was appointed as the creative director for these brands last spring by Walmart.

In the upcoming weeks, Walmart will launch new collections featuring clothing and accessories on its website and in select stores as part of its initiative to establish itself as a leading destination for affordable fashion beyond just basic items like socks and T-shirts.

While grocery accounts for almost 60% of Walmart's yearly revenue, it is apparel, home decor, and other general merchandise that generate higher profits and increase the number of items in customers' shopping carts.

Maxwell stated that customers will observe enhanced features such as metal studs, certified vegan leather, and distinctive denim washes in tops, dresses, and other items in the spring collections. The prices of these items range from $8 to $75.

Maxwell stated, "Clothing is an intimate experience, and it's about how it makes you feel."

Maxwell's unique, colorful pieces will aid Walmart U.S. in capturing a larger market share by appealing to customers' sense of style.

In addition to Free Assembly and Scoop, Walmart has two other exclusive, elevated brands: Sofia Jeans, a line developed with actress Sofia Vergara; and Eloquii Elements, a plus-sized women’s line inspired by acquired brand Eloquii. Additionally, Walmart has added more national brands to its website and stores, including athleticwear from Champion and girl’s apparel and accessories from Justice.

While Walmart did not disclose growth or revenue figures for apparel sales, there are indications that its strategy is successful, as CEO Doug McMillon stated on the company's last earnings call that apparel was one of the strongest categories during the holiday quarter.

Playing up apparel in stores, online

During the launch of the spring collections, Walmart is advertising its private brands through its stores and online platform.

The spring collection of Free Assembly, comprising nearly 500 pieces for men, women, and kids, will be carried by 1,000 stores, which is twice as many as last spring, and approximately 20% of the retailer's over 4,700 U.S. stores.

Increasing store count is one of the largest ways to expose brands to the public, as people are more likely to purchase them online and in-store after seeing them in physical locations, according to Incandela.

Scoop's women's collection, consisting of 56 pieces including denim items, skirts, and shoes, will be carried by 500 stores and available on Walmart's website.

Walmart bought Zeekit, a virtual fitting room start-up, due to the company's push into fashion.

Walmart is testing out new store designs by revamping a store in Bentonville, Ark. The changes include wider aisles, brighter lighting, mannequins, and branded sections at the front of the store.

Incandela plans to implement the design format in more stores, which emphasizes the product as the main focus and minimizes distractions, allowing customers to appreciate the quality and style of the product. This approach has been successful, as customers seek an engaging shopping experience that enables them to explore and discover new products.

‘A basket enhancer’

In 2021, the U.S. apparel industry surpassed pre-pandemic sales levels in both dollars and units, with a record $246.2 billion in sales, representing a 9% increase from 2019 and a 33% increase from 2020, according to The NPD Group.

The upcoming comparisons in the apparel retail industry will be challenging due to the 2021 season, when Americans spent generously on refreshing their wardrobe after receiving vaccines and anticipating increased social activity, according to Kristen Classi-Zummo, a fashion apparel industry analyst for NPD.

She anticipates a decline in apparel sales in 2022, with some consumers purchasing luxury items and others seeking discounts.

Incandela stated that as the weather warms, shoppers seek vibrant pieces to add a sense of normalcy, while also considering the increasing value of food and other essentials.

Both collections will enable individuals to feel content and express themselves in a contemporary manner while maintaining a competitive price point, as people are becoming more conscious of inflation.

A retail analyst for D.A. Davidson, Michael Baker, stated that Walmart's fashionable products can assist "a more moderate income customer to upgrade slightly." While browsing for groceries or picking up a lightbulb, she may come across a blouse to purchase, he added.

He stated that he viewed it not as a traffic generator but rather as a basket enhancer.

During the pandemic, Walmart was unseated as the country's top apparel retailer, and the fashion push is now a competitive move, according to research by Wells Fargo.

As inflation and a reopening economy strain their finances, customers may turn to Walmart for clothing, according to Baker.

Walmart can benefit from headwinds and tailwinds, as there is demand for refreshing wardrobes and the consumer may feel pinched in other places, giving Walmart market share potential.

Walmart is emulating the strategy of a prominent big-box retailer that has successfully launched private fashion brands, highlighted these brands in its stores, and gained a reputation for affordable chic.

Despite being the largest grocer in the country, Walmart is still working on refining its fashion offerings and figuring out how to display clothing in its stores. However, the executive pointed out that both groceries and trendy clothing have a limited shelf life.

"Fashion is a perishable, and the big risk is markdowns," he stated.

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