Scoop is one of Wal-Mart’s exclusive fashion brands. We also do business with national brands like BCBG Paris.
Melissa Repco | CNBC
Springdale, Arkansas — Dressed up mannequin. An eye-catching display of sophisticated furniture and colorful swimwear. And keep a sign that promotes an exclusive brand or a nationally recognized brand.
WalmartLocated just 16 miles from its headquarters in northwestern Arkansas, the redesigned SuperCenter reflects retailers’ ambitions. To get more customers to visit stores and websites to fill closets, living rooms and refrigerators.
This is a new model for retailers and will soon spread nationwide. Wal-Mart will open another 30 stores by late January and hundreds more in the next fiscal year, said Chief Merchandising Officer Charles Redfield.
He said the location is slightly different and there are various elements of the pilot store. He said they would be used for testing and learning before Wal-Mart expanded its appearance more widely.
Wal-Mart is the country’s largest grocery store in terms of sales, but we want to increase sales of high-margin products such as apparel.In the last 5 years, retailers have Launched a new brand When Established a partnership with a company Like Reebok, gap Justice expands its offerings in apparel, home and other discretionary categories. These brands often focus on higher prices and styles. Many have expanded to more large stores in Wal-Mart.
After Wal-Mart’s first-quarter earnings, retailers’ strategies have become more urgent. Disappointed Wall Street last month and reduced profit expectations..Combining products during Wal-Mart Contributed to that earnings mistake.. As customers spend more on groceries and gas due to inflation, some customers have decided not to buy other, more profitable items such as clothing and televisions.
The retreat of discretionary spending is generally hitting retailers. Especially because the company wraps during the period a year ago when shoppers had extra dollars from the stimulus check. According to Wal-Mart filings, general merchandise sales in the United States fell in the first quarter, lower than in the year-ago quarter, despite net sales in the United States rising to $ 96.9 billion.
To exacerbate trouble, retailers — Target, Coles When American Eagle Outfitters — Excess inventory has increased as consumers have acquired popular pandemic products, monitored their budgets, and decided to spend on travel and eating out instead of products.
Wal-Mart reported that inventory levels increased by about 33% year-on-year, partly due to excess merchandise. US CEO John Furner said on Investor Day last week that it would take “quarters” to get back where retailers want. He estimated that about 20% of that excess was the product the company “just wanted.” The company refused to comment further on its strategy of selling through products after Target. We shared that aggressive inventory plan.
According to the company’s filing, about 32% of Wal-Mart’s US net sales come from common merchandise in recent years. It fell to 28% in the last quarter. At Target, 54% of sales come from general merchandise, according to the latest annual report.
If Wal-Mart can take advantage of the frequency of grocery shopping in stores, Wal-Mart has great opportunities. Popular online options like curbside pickups Bank of America retail analyst Robbie Ohms said it was to boost sales of general merchandise.
In addition, soaring prices may lead Wal-Mart’s new or rare shoppers to challenge discount stores, he said.
“It’s like everyone is in control of inflation,” Ohms said. “There will be groups of people in Wal-Mart who usually don’t, so as people become more value-conscious, they may get a better customer flow.”
Wal-Mart is expanding prices in the cosmetology sector. We recently added a “Beauty finds” display that offers make-up, skin care, hair and other items for $ 3, $ 5, or $ 9, respectively. We also sell prestige brands through the New Deal with British beauty retailer SpaceNK.
Melissa Repco | CNBC
Wal-Mart is expanding its style and price on its website and more and more stores. In addition to cheap basics, we sell luxury brand sundresses and tops, Scoop and Free Assembly, which customers can pack for vacations or wear at parties. From the luxury brand Sofia Jeans developed by actress Sofia Vergara, we will deliver jeans that customers can wear for dinner.
And at home, Wal-Mart also sells more ambitious styles. This includes a collection developed by the stars Clare Shearer and Joanna Teprin behind Netflix’s “Home Edit”.
At Wal-Mart’s redesigned store in Arkansas, the display shows Thyme & True, one of the retailer’s exclusive home brands. Shoppers can scan the QR code to see item details or order online.
CEO Doug McMillon said Wal-Mart’s range would help better survive periods of inflation.
On Investor Day earlier this month, he and other Wal-Mart executives emphasized that retailers will continue to offer entry-level pricing to customers living on tight budgets. Not only major foods such as rice, tuna, macaroni and cheese, but also common products such as T-shirts and tennis balls are offered at low prices.
But it can also attract customers who spend more money, McMillon said.
“As you grow your income, how many of those customers can you attract in areas where you may not be dealing with them often?” He said. “Can we move volume to apparel, home, and perhaps some of the consumables categories as people become more value conscious?”
Wal-Mart attracted consumers with basics and groceries, but lost them when they bought other products, Redfield said.
“They had to go somewhere to get what they wanted in terms of style and quality, so we said,’I have to fix it,'” he interviewed. Said in.
Wal-Mart has launched an exclusive apparel brand, including Love & Sports, an active swimwear line, encouraging customers to buy more popular products. These brands are in the heart of a new store in Springdale, Ark, near Wal-Mart’s headquarters.
Melissa Repco | CNBC
Inside the redesigned store in northwestern Arkansas, the clothing department has fewer racks and wider aisles to facilitate browsing. There are dedicated areas similar to national brand mini-shops, such as Reebok and children’s clothing brand Justice. And it suggests how to put Wal-Mart’s own fashion and home brands on the front and center with mannequins and displays to assemble outfits and rooms.
Walmart offers more square footage in its stores of consumer brands that resonate with young social media savvy customers, such as shaving company Billie and dog food company Jinx.
One of the other big changes?Price signs are diminishing near national apparel brands and Wal-Mart’s noble clothing brands — A big break from retailers’ tendency to make numbers big and bold.
“We sell apparel in grocery stores, but that doesn’t mean we have to sell apparel like groceries,” said Walmart, Vice President of Marketing, Store Design, Innovation and Experience. One Albis Washington said. “Apparel is a discretionary category. It’s emotional. You want them to fall in love with fashion.”
“This is where we really want them to see, feel, touch, and then look at their prices to validate their choices,” Washington said. “We make our products heroes and set tones.”
Even in the grocery department, the appearance of the store is different. The Wine Isle is larger and contains expensive red wine and top-notch champagne. The craft beer corner also stands out. Both changes are aimed at more trendy millennial customers, Redfield said.
“We’re going to sell a lot of underwear and socks,” he said. “We sell a lot of underwear and socks. We will continue to sell them, but when customers want something special, force them to go elsewhere. there is no.”