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Walmart (WMT) Targets Apparel Space, Unveils New Brands

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Following a number of initiatives to ramp up grocery sales, Walmart Inc. (WMT - Free Report) is now eyeing to strengthen its foothold in the apparel space. The world’s largest retailer’s latest move comprises the launch of four apparel brands that will hit stores from Mar 1 onward. With exclusive brand lines for men, women and kids fashion, the company is all set for the spring season in style.

Expanding Apparel Category Through Launches

Walmart is striking the right chords when it comes to competing with big box retailers and more particularly with Amazon.com (AMZN - Free Report) . Retailers like Target (TGT - Free Report) and Amazon have already been investing heavily in the apparel space. With recent brand launches, Walmart is expected to solidify its position in the apparel category.

The new apparel brands — Time and Tru, Terra & Sky, Wonder Nation and George — promise on delivering fresh fashion, quality and comfort at affordable rates. Apparel and other accessory products of these brands will be available at Walmart stores and on Walmart.com. Moreover, the company has partnered with Elizabeth Stewart, a renowned celebrity stylist, for launching the new line-up of brands.

Apart from signature styles and trending designs, Walmart’s apparel brands will be showcased at its stores with a whole new look. Store upgrades will include improved signage featuring inspiring photographs to help customers’ better coordinate styles. Additionally, stores will be provided with increased floor space for better visibility and revamped fitting rooms. While Walmart has been taking numerous strides to progress in the e-commerce realm, the aforementioned moves indicate the company’s efforts to enhance store experience. This highlights its focus on evolving as an omnichannel retailer.

Notably, the company’s efforts to consolidate and strengthen apparel and accessories category is evident from its acquisitions of Modcloth, Bonobos, Shoebuy and Moosejaw as well as partnership with Lord & Taylor. With such effective strategies, Walmart seems well prepared to attract shoppers to its fashion department at its stores and e-commerce business and build an impressive brand portfolio.

 



 

Other Strides Toward Growth

In addition to expanding in the apparel space, Walmart has also been undertaking aggressive measures to achieve growth in the booming online grocery arena. In fact, to better meet consumers changing shopping preferences, Walmart has been improving grocery delivery services. Recently, the company’s warehouse unit — Sam’s Club — teamed up with Instacart. Apart from this, the company has launched a new online platform for furniture and home décor products to strengthen e-commerce business. Also, Walmart has been actively improving its digital offering through efficient payment systems and checkout processes.

Notably, Walmart’s consistent efforts to accelerate online business resonates well with consumers’ fast-paced lifestyle and reinforces its position amid other retailers like Kohl’s (KSS - Free Report) , which are also progressing strongly with their online business.

Wrapping it up, such strategic endeavors have aided this Zacks Rank #2 (Buy) company to emerge as a preferred pick for investors. Shares of Walmart have soared almost 30% over the past year compared with the industry’s rally of 25.5%. Further, we expect that the company’s dedicated efforts to achieve all-round growth will raise investors’ optimism.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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