Walmart has revealed that it is joining hands with Lord & Taylor in a bid to attract more shoppers. Walmart which is well-known for its discounted prices intends to expand its market niche by reaching out to more affluent clients.
Even though the financial details of the merger were not made public both companies seemed to agree that the online store was a premium shopping destination. With this partnership, Walmart will feature more than 125 brands such as H Halston and Effy, Vince Camuto, Tommy Bahama among others.
Lord & Tylor, which is among the oldest department stores in the U.S, has been posting decreasing sales recently. This partnership promises to help increase sales by taking advantage of the numbers the online retailer has to offer. Last month, Walmart attracted 101 million visitors on its site compared to only 2.2 million that Lord & Taylor attracted. Even though Lord & Taylor will open its store on Walmart in the next two weeks, it will still operate its own stores and its own website at the same prices on Walmart.
This partnership will aid the online giant to reach out to new markets. With this merger, Walmart will cast its net wider beyond its low-income customers and tap the higher-income bracket. The listed company seems to have a new strategy. The company has also redesigned its website, changing its colors from yellow and bright blue to navy blue and grey.
The recent moves are seen as a strategy to try and compete with Amazon. The company, whose customers have an average income of $85,000 compared to Walmart’s website customers $56,000, has seen increasing online sales lately. Amazon has also brought on board several ailing retailers. A case in point, J.W Crew is now selling clothes on Amazon’s site. Sears is also now using the company’s site.
This is not the only major deal Walmart has been involved in. Recently, it was able to buy-off Jet.com. Jet is an online retailer focusing on higher-income as well. The acquisition has played a big part in helping Walmart buy other high-end, online clothing stores like Modcloth and Bonobos.
Flipkart is another company that Walmart bought a controlling stake. The online Company spent $16 million for the controlling stake in Flipkart (India’s leading e-commerce provider)
Walmart Inc (NYSE: WMT) closed the latest trading session on Wednesday at $86.13.