Walmart targets Gen Z, wealthy shoppers with latest initiatives

The insight: Walmart is embarking on a brand refresh as it looks to become shoppers’ retailer of choice for everything from cereal to Chanel handbags.

Recent initiatives include:

• A new, more contemporary brand identity that reflects Walmart’s evolution into a high-tech, omnichannel retailer
• A partnership with luxury reseller Rebag to sell pre-owned designer handbags, jewelry, and accessories on its third-party marketplace
• A $520 million deal with warehouse automation company Symbiotic to enhance its online pickup and delivery fulfillment systems
• An ecommerce integration into metaverse platform Zepeto that allows users to purchase virtual and real-world items from Walmart’s Gen Z-focused No Boundaries label.

The big picture: Taken together, these initiatives show a company that is trying to become more relevant to shoppers across all ages and income levels.

• Consumers want convenience. Making delivery faster and more efficient makes Walmart’s ecommerce offerings—including its Walmart+ membership program—more enticing. It also puts the retailer closer to its goal of achieving ecommerce profitability in the next two years.
• Affluent shoppers are driving growth. While Walmart has made significant inroads with affluent consumers seeking value, it’s trying to build on those gains by expanding its array of premium products and brands. Adding luxury goods to its marketplace via the Rebag partnership fits in with that ambition—although Walmart’s long-held reputation for low-priced goods may make it a less appealing destination for Hermès handbags and Cartier jewelry.
• Gen Z consumers are in the spotlight. Walmart’s expanded marketplace offerings and affordability have caught the attention of Gen Z. Viral products like the “Wirkin”—a dupe of the Hermès Birkin—have only added to the hype, while the retailer’s metaverse initiatives and Gen Z-focused private label are helping it make further inroads.

Our take: Walmart keenly understands that offering value is not merely a question of having the lowest prices—although that remains a central aspect of its appeal. By investing in faster, more efficient delivery; expanding the array of products and brands on its marketplace, particularly on the premium end; and staying current with Gen Z customers, Walmart is well-equipped to defend its position as the largest retailer in the US.

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