Walmart is one of the most powerful retail and e-commerce companies in the world. The business is mainly based on home & deco products sales. But the year 2020 comes with big plans for Walmart, says CEO Doug McMillon.
In 2020 Walmart wants to place itself strongly in the fashion market, occupying a leading position in terms of setting fashion trends. With a turnover of over $ 514 billion, Walmart is among the largest retail companies in the world.
Although in Walmart stores we can also find clothing, fashion accessories and many other products in this sector, the turnover for these products is insignificant, compared to the whole revenue.
Walmart competitors are collecting billions from the fashion niche
While Amazon is building online credibility and collects billions of dollars from fashion, Walmart seems to be lagging behind.
But Andy Dunn, the co-founder of Bonobos and the owner of all the fashion brands in the Walmart portfolio, told Glossy.co magazine, at the end of 2019, that the new year will lead to a massive growth strategy in the online for the company.
The last year ended up with more than 600 collaborations in fashion for Walmart and for the 2020 portfolio, the company’s directors plan to make massive changes for the first time.
In order for this to happen, Walmart is planning a large-scale creative collaboration with PR agency 2WPR. And in recent years, the giant American company has made huge acquisitions to prepare the steps that will make the company thrive this year.
In 2019, for example, fashion sales increased by 11% compared to the same date in 2018. But by 2020, executives expect them to explode and bring a total of 0.7% in general revenue for Walmart.
The online will be conquered step by step by Walmart ads
The direction is clear to Americans, says 5WPR CEO Ronn Torossian. Walmart will buy massive advertising, to grow especially the e-commerce sector, where it can successfully sell fashion products, these being among the most purchased online products in the world.
Although the growth in the online sector has been over 40% in the last few years, it is surprising that online sales contribute only 5% in the total turnover of the US giant. Under these conditions, a change is required.
And according to the statements of Denise Incandela, the head of the fashion department in the online sector in the US, Walmart expects this change to come precisely from the direction of online sales.
So, for this year, campaigns with fashion influencers, launching new fashion trends and brands in the beauty area, but even buying whole companies from fashion niches, all these will be priorities for Walmart.