Lord & Taylor is joining forces with Walmart to create an online store that will offer over 100 fashion brands.
The online store will be a premium destination, reflecting both Lord & Taylor’s need to reach a broader audience, and for Walmart to attract higher net worth individuals.
Though Lord & Taylor already has an online shopping property, its audience is a drop in the ocean at 2.2 million compared to Walmart’s 101 million.
Walmart has been working toward a more affluent shopper with acquisitions such as Bonobos and Modcloth, as well as internal innovations such as an exclusively online bedding and mattress business. Walmart’s redesigned premium e-commerce site has reduced mention of the word Walmart to a minimum, as it borrows a premium feel.
Like many other US department stores, Lord & Taylor is trying to cut physical costs while expanding online revenue.
Retailers are considering new strategies in a changing retail environment. As consumers jump from one trend (and brand) to the next faster than ever, US retailers are collectively being forced to pivot away from the traditional model, which values low costs above all else.
Amazon is tipped to become the leading apparel retailer in the US. Part of the strategy for Walmart is to offer its marketplace function to brands in a style popularised by Amazon, by offering a store within a store.
