Wal-Mart Launches Line of Apparel
Wal-Mart Stores Inc. on Thursday said it had launched its own brand of urban apparel for women, aiming to lure consumers with lower-priced versions of trendy fashion in denim, velvet and silk.
The brand “Metro 7” is targeted to women 25 to 45 years old and is rolling out initially in 500 stores, mainly in urban areas, said Wal-Mart marketing chief John Fleming.
Wal-Mart seeks to revive U.S. sales by improving its fashion credentials, hoping to entice consumers who shop for food at its stores but look elsewhere for hip apparel. The company has not been able to capitalize on its George line in the United States, even though the clothing brand is No. 1 in Britain.
Metro 7 dresses up Wal-Mart’s family-oriented fashion, with silk camisoles, sequined tank tops and glittery tunics, but sticks to the lower prices that the retailer’s brand image is built on. Fleming said styles would be updated regularly, but did not give a timeframe.
“This really appeals to a fashion-forward consumer,” Fleming said. “Our strategy is to become more relevant to customers who are already in the store across more categories.”
Last month, Wal-Mart took a cursory interest in clothing designer Tommy Hilfiger Corp. and hosted its first runway show during New York Fashion Week.
But analysts cautioned at the time that a foray into more-expensive apparel would take the world’s largest retailer away from its core expertise.
By aiming at women over the age of 25, Wal-Mart gets a foothold in an apparel market that is not well served and could be a springboard to other segments, analysts said.
“They are taking small but very logical steps in expanding from their core,” said Nick Greenspan, a partner in the London office of Bain & Co., a consulting firm.
Metro 7 could pit Wal-Mart against lower-priced retailers that appeal to young consumers such as Sweden’s “cheap chic” trendsetter H&M; and traditional rivals such as Sears Holdings Corp., parent of Kmart, and J.C. Penney Co., which have already invested in campaigns to convey a hip image among teens and young adults.
Wal-Mart will advertise its new line with print and online commercials, including ads in fashion bible Vogue, as well as in-store promotions and special events, Fleming said. One ad features actress and former Miss Universe Dayanara Torres.
Fleming became chief marketing officer in April and had worked 19 years at Target Corp., which boosted its image by enlisting designers such as Isaac Mizrahi to create discount fashion and feature in slick advertising. “We’re not trying to be Target, we’re trying to be Wal-Mart but more relevant to our customer,” Fleming said.
Wal-Mart shares rose 43 cents to $43.93.
