What: Walmart is expanding its market share in fashion by attracting higher-income shoppers through its omnichannel strategy and enhanced apparel offerings.

Why it is important: Walmart's ability to attract wealthier customers and grow its fashion business demonstrates the retailer's agility in adapting to changing consumer preferences, positioning it for continued success in a competitive retail environment.

Walmart has reported strong third-quarter earnings, driven by a 5.3% increase in comparable sales and a 27% growth in global e-commerce. The company is increasingly attracting higher-income shoppers, with 75% of its market share gains coming from households earning over USD 100,000. CEO Doug McMillon highlighted Walmart’s focus on improving its fashion offerings, particularly through its omnichannel approach, which combines in-store enhancements with a growing online marketplace. This strategy has helped the retailer gain traction in categories where it previously lagged, such as apparel. Walmart’s investments in technology, including AI and new store formats like Sam’s Club locations without traditional checkouts, have also contributed to its success. The company raised its full-year outlook, forecasting sales growth of up to 5.1%, reflecting confidence as it heads into the holiday season.

Walmart sees growth in fashion and higher-income shoppers