KPOV

Democratizing Fashion

Fashion is no longer confined to the runways of Paris or the pages of Vogue. Thanks to social media and retailers like Walmart, fashion trends are accessible to everyone. I sat down with Denise Incandela, EVP of Fashion at Walmart, this morning at CommerceNext, and we discussed how Walmart's strategy is focusing on making fashion both attainable and aspirational, bringing high style to every corner of America.

Walmart is enhancing its fashion appeal by continuing to invest in and build private brands as well as augmenting its offer with national brands. As Amazon has abdicated building their own brands and Target has focused almost predominantly on delivering proprietary fashion, Walmart has taken a more balanced approach to its fashion offer. This approach provides customers with high-low options, where affordable Walmart items can be paired with more expensive, trendy pieces.

Adding new national brands like Reebok, Chaps, and Jessica Simpson to its offerings, ensuring a constantly refreshed and desirable assortment. This extensive selection is available both in-store and online, enhancing the overall shopping experience. By incorporating these higher-priced national brands, Walmart is not only raising the average order value but also meeting customer demand for variety and quality, precluding her from leaving Walmart and buying the product elsewhere. In addition to the product they are developing and buying from vendors, Walmart is leaning heavily into their marketplace, with millions of additional skus made available to its customers without the onus of pre-paying and carrying that inventory.

Key to Walmart’s strategy is the expansion and elevation of their product assortment to include Gen Z. Today, Walmart announced that in July they are relaunching No Boundaries, their $2B young adult brand that’s one of their largest and most well-known fashion brands (introduced in 1994) - they want to be the Gen Z customer’s first choice for fashion.Gen Z is looking for fashion brands that celebrate their journey towards self-expression and individuality.The new No Boundaries is a modern, relevant, youthful brand that inspires and celebrates the unlimited potential of self-expression at an unbeatable value. No Boundaries leads their opening price point brands in capturing the young adult customer with the highest contribution of 18-24 shoppers.

And if winning on earth with Gen Z wasn’t enough, they are taking on the Metaverse. One of the most exiting ways Walmart is tapping into the Gen Z customer is by working with creators who are curating No Boundaries outfits on Roblox and creating virtual twins. Roblox has 77M daily active users and is one of Gen Zs most popular platforms to engage with (spending two hours per day on the platform). Through these efforts, Walmart is democratizing fashion, ensuring that everyone, regardless of their location, age or budget, has access to the latest trends and styles. Whether you're in Bentonville or NYC, Walmart makes it possible to stay fashionable without breaking the bank.

TECH TALK

Tech Platforms That Pay You: Boost Your Revenue with Minimal Effort

Imagine tech platforms that not only cost you nothing to integrate but also pay you to be their partner. No integration fee, no SaaS fee, no revenue share, and generally no contract. Sounds like a no-brainer, right? Here are a few platforms that offer truly fast and simple integration, with some going live within days if you're on Shopify.

Extend

Extend offers customers both extended warranties and package insurance. At checkout, customers can opt-in for package insurance (around 2% of the purchase price). Extend handles all claims and pays retailers about 30% of every customer opt-in. This service boosts customer confidence, leading to increased spending. Cha-ching!

ROKT

ROKT pays retailers to advertise at the bottom of their e-commerce receipts. They partner with over 300 advertisers and allow retailers to control who appears on their receipts (no competitors or unsuitable advertisers). On average, ROKT pays around $0.22 per transaction. Do the math and watch your revenue grow!

FlexCharge

FlexCharge approves 30% of your online credit card declines. They reverse transactions declined for reasons like fraud, insufficient funds, incorrect address, or card expiration. FlexCharge assumes all the risk and pays the retailer over 85% of the total transaction value. With credit card declines averaging around 10%, this could add up to 3% growth to your e-commerce business. Giddyup!

CNS

CNS is a carrier-neutral advisory that leverages its network of over 100 telecom and data service providers to reduce company rates. They have saved companies money on everything from telecom to AWS and video communications to online security. CNS centralizes and manages all your billing, often keeping your current providers but using their size (serving over 2,000 customers) to negotiate better fees. A free 2-week analysis/audit of your bills will highlight how CNS can reduce your costs or confirm you have the best possible pricing.

FEATURED PARTNER

THE RETAIL PILOT PODCAST

Our latest flight of The Retail Pilot - Leaders & Legends features Ken’s conversation with Hali Borenstein, CEO of Reformation.

Hali shares her journey in the retail industry, the growth of Reformation, and the unique store experience. She discusses the impact of a major investor, the company's growth strategy, and the innovative technology used in Reformation stores. In this conversation, Hali discusses Reformation's commitment to sustainability, their approach to sustainable fabrics, factory partnerships, circularity, vintage products, and marketing strategies. She also shares insights on leadership, mentors, and lessons learned from past decisions.

Flightpath June 13, 2024