What: Walmart is expanding its focus from basic apparel to high fashion, hiring industry veterans and designers to elevate its fashion offerings and compete with Amazon in the $7.2 trillion retail market.

Why it is important: Walmart's strategic move into fashion signifies a major shift for the retail giant, aiming to tap into a lucrative market segment and attract style-conscious consumers who typically look beyond Walmart for fashionable clothing. This evolution could reshape the competitive landscape of retail, showcasing how traditional mass-market retailers can successfully venture into more sophisticated product categories.

Walmart is making a significant push into the fashion industry, moving beyond its reputation for low-cost basics to offer more stylish and trendy apparel. This strategic shift is spearheaded by industry veterans Denise Incandela, formerly of Saks Fifth Avenue, and designer Brandon Maxwell, known for his high fashion credentials and work on brands like Scoop and Free Assembly. Walmart aims to capture a larger share of the $7.2 trillion retail market by leveraging its scale and strategic supplier relationships. The retailer has already seen substantial growth in its fashion sales, which reached $29.5 billion last year. With a focus on digital transformation and an expansive online inventory, Walmart is positioned to compete directly with Amazon in the fashion sector. This new direction is part of a broader effort to democratize fashion and make stylish, quality clothing accessible to a wider audience.

Walmart already sells clothes — now, it wants to sell fashion, too