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Walmart expands fashion focus with new private clothing label for men and women
Walmart is doubling down on its expansion into fashion with a new casual clothing line for men and women called Free Assembly.
The brand will debut this week online and in 250 stores, hoping to appeal to shoppers who want style and value.
This is not Walmart’s first attempt to build up its fashion credentials. It acquired popular brands like menswear retailer Bonobos. It tapped celebrities including Ellen DeGeneres and Sofía Vergara to inspire clothing collections. And it struck a deal with ThredUp, a seller of secondhand apparel, shoes and accessories, to offer higher-end brands on a budget.
With the coronavirus crisis, Walmart has a new opportunity to grab market share in apparel. Customers have shopped at its website and stores for everything from pantry staples and puzzles to workout clothes. Many major apparel retailers, on the other hand, were forced to close during shelter-in-place orders and furlough thousands of employees. Some like J.C. Penney and Neiman Marcus filed for protection from creditors in bankruptcy court, while and others, like Macy’s and Kohl’s, saw profits drop.
The pandemic has led to a dramatic shakeout between the haves and have-nots in retail industry and apparel business. Apparel revenue is expected to drop by 20% to 30% industrywide this year and by 10% to 25% in 2021 compared with last year, according to McKinsey & Co.
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