Walmart is selling Chanel, Fendi, and Prada. Here’s why that matters
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Walmart (WMT+0.09%) is making a big push into the luxury market and has tapped resale platform Rebag to attract wealthier shoppers.
Starting Jan. 16, the retail giant will offer over 27,000 pre-owned, high-end items on its online marketplace, including coveted pieces from brands like Chanel, Fendi (LVMUY+10.05%), Prada (PRDSY+2.95%), and Louis Vuitton.
The move follows the viral success of the “Wirkin,” a dupe of the famous Hermès (HESAY+5.21%) Birkin bag, and marks a significant step in Walmart’s resale business. By offering luxury goods at accessible prices, Walmart aims to broaden its appeal to high-income shoppers who have been driving recent sales growth.
Rebag’s catalog will include luxury handbags, watches, jewelry, and accessories – ranging from smaller items to iconic pieces like the Birkin bag, which can cost tens of thousands of dollars. Additionally, there will be 100 items sold exclusively to Walmart customers, the company confirmed to Quartz in an email.
The partnership could help Walmart tap into a fashion-forward, price-conscious consumer, and one that’s looking for premium items at discount. The exclusive collection is designed to offer access to hard-to-find pieces that many shoppers may not expect to find at Walmart.
The collab also plays into Walmart’s sustainability goals, as it increases the number of pre-owned items on the platform. This follows the 2024 launch of “Resold at Walmart,” a dedicated section for secondhand goods.
Walmart has been growing its third-party marketplace aggressively, with sales increasing 30% year-over-year. That could help it compete with e-commerce giant Amazon (AMZN-0.90%), especially with the surge in online shopping. Walmart may have to play catch up. Amazon already features a luxury goods section called “The Shop,” which is operated by online retailer Shopbop.
By expanding into luxury resale, Walmart may further boost site traffic, attract new customers, and strengthen its position the fiercely competitive e-commerce landscape.
Meanwhile, Walmart is facing investor backlash over its diversity, equity, and inclusion (DEI) efforts. Over 30 shareholders sent a letter to CEO Doug McMillion earlier this week, accusing the company of bowing to anti-DEI groups.
The group, primarily composed of faith- and values-focused investors, called the pull back “very disheartening.” They’re demanding answers and want to meet with the company’s senior leadership and board to discuss the shift in policy. Shareholders – including organizations like Amalgamated Bank (AMAL-1.24%) and United Church Funds – have raised concerns about the risks of discrimination and inequities for over 30 years.
