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How Walmart Is Strengthening Its Product Offerings

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Jan. 9 2018, Updated 9:05 a.m. ET

Walmart relies on acquisitions

As Target (TGT) launched a series of fast-growing exclusive brands to drive its top-line performance, Walmart (WMT) turned to acquisitions to bolster its product offerings and strengthen its business amid growing competition from Amazon (AMZN).

After its acquisition of Jet.com in August 2016, Walmart in a short span acquired several in-vogue brands including Hayneedle, Shoebuy, Moosejaw, ModCloth, and Bonobos to solidify its position in the fast-growing online categories like apparel and shoes. Moreover, the company partnered with Lord & Taylor, an upscale fashion brand, to launch its flagship store on Walmart.com.

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Plus, through its Jet.com, Walmart rolled out its private-label brand named “Uniquely J” to focus on urban millennials. Also, the company plans to hire 2,000 category specialists to improve its merchandising. In addition to this, Walmart’s focus on supply-chain reinvention is further supporting its merchandising initiatives.

Outlook

Given the changing needs of customers, Walmart is expected to make bolt-on acquisitions to strengthen its product portfolio. The company is expected to roll out fast-growing brands and match the offerings of Amazon and Target to support its digital business, which is growing at a brisk pace.

The company’s management remains upbeat and expects its digital business to generate sales of $11.5 billion in fiscal 2018. Moreover, the company’s e-commerce business is estimated to register growth of 40.0% in fiscal 2019.

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