What: Walmart aims to become a destination for fashion customers.

Why it is important: Low prices strategy is not sustainable on the long term in a digital world. More is expected by customers in physical locations.

Walmart is undergoing a transformation to attract higher-spending customers by adding pricier merchandise, including collaborations with celebrities like Drew Barrymore and Sofia Vergara.

The retailer is shifting from its traditional image as a discount store to becoming a destination for fashionable home goods and clothing. As part of its “Stores of the Future” initiative, Walmart is renovating 700 stores and introducing national brands like Reebok and Justice, with most goods priced between USD 15 and USD 50.

The company aims to convert its price-conscious customer base into style-conscious shoppers. However, Walmart's earlier attempts to branch into fashion have been unsuccessful, and the new strategy presents risks and challenges in the highly fragmented markets for home decor and apparel.

Walmart is using its grocery activity to draw customers, and keeps them with a new brand assortment