Walmart unveiled 4 new clothing brands
In a bid to refresh its apparel category, Walmart (WMT) recently unveiled four new exclusive clothing brands catering to men, women, and children. Its strategy to roll out private label brands is expected to accelerate sales growth. That same strategy has worked for Target (TGT) and Amazon (AMZN).
Walmart launched Time and Tru for women, Terra & Sky for plus-sized women, and Wonder Nation for kids, and revamped its George brand for men. These brands are exclusively sold at Walmart stores and on its website in the price range of $5 to $30.
Why private label brands matter
As competition heats up, retailers are focusing on makeovers and have turned to exclusive private label brands to accelerate growth. These private label clothing brands not only expand the category and ensure high profit margins but also have a sense of exclusivity and differentiation that resonates well with consumers. These brands are also priced lower than established brands.
Target has already launched some only-at-Target brands. Its kid-oriented brand Cat & Jack saw stellar success and generated more than $2 billion in sales in the first year of its launch. Recently brands, including A New Day, Goodfellow, and JoyLab, are also seeing strong demand.
Amazon, which is giving apparel retailers a run for their money, has quietly launched multiple private label clothing brands such as Lark & Ro and Amazon Essentials over the past couple of years. JCPenney (JCP) recently launched its exclusive private label brand Obsess to attract young women.