Walmart has evolved beyond its reputation as a low-cost retailer into one that gives brands that have started online, are new to physical retail, or sit at higher price points the opportunity to scale throughout the U.S.The company has been working for many years to expand its assortment of emerging brands, including organic and natural products and luxury beauty products. In 2022, it began its Walmart Start accelerator program for emerging beauty brands entering stores for the first time, similar to other programs from retailers such as Sally Beauty, Ulta and Target. Through such efforts, Walmart today has cemented itself as a hub for more emerging brands, as well as those offering more expensive products geared toward a higher-income shopper — think collagen water or $12 lemon-lavender toothpaste.
Founders and other leaders at four different brands Modern Retail spoke with said they like the exposure and reach Walmart can provide. In addition, they said it has gotten better at recruiting digitally native brands or those in new categories relevant to higher-income shoppers.
Walmart, more generally, is on a mission to expand its assortment to cater to more kinds of shoppers. “We’re expanding choice for our customers and members by improving our first-party assortment, especially in areas of trend and fashion,” Walmart president and CEO John Furner said during the company’s first-quarter earnings call this month. In beauty, 75% of Walmart’s growth in the category this quarter came from brands new to Walmart, such as the skin-care brand La Roche-Posay. Walmart is also broadening its digital assortment through its third-party marketplace, which saw almost 50% sales growth in the first quarter.
