Retail giant Walmart Inc (NYSE:WMT) is making its debut in the resale apparel market following the announcement it made on Wednesday, revealing that it has signed a collaborative agreement with a resale marketplace known as ThredUp.
This is an interesting move for Walmart and also one that has reportedly been in the works for a year. However, this is an ideal time for the launch, especially because people have been forced to re-evaluate their spending habits due to the coronavirus economic impact, which has resulted in millions of job losses.
What does it mean, and what is the motivation behind it?
This is a trend that has been going on for some time, and it is meant to reduce wastage. It is basically aimed at reselling clothing items that have been worn before but are still in good condition. This is a trend that other clothing brands such as Abercrombie & Fitch Co. (NYSE:ANF) and Nordstrom, Inc. (NYSE: JWN) have also embraced.
Amazon will treat the move as a deeper push into the fashion industry. The partnership with ThreadUP will thus allow the retailer to achieve this goal while making more clothing items available on its e-commerce platform. ThreadUP will also be able to sell more than 750,000 clothing items on Walmart.com.
“Over the last few years, we’ve focused on expanding our assortment of quality, on-trend, accessible fashion to help customers outfit themselves no matter their personal style or budget,” stated Denise Incandela, Walmart’s executive in charge of fashion e-commerce.
The partnership has been compared to making an online thrift-shop available on the Walmart e-commerce website. This means that people will be able to purchase or sell second-hand clothes. It also means that shoppers will get access to cheaper but still high-quality attires.
Shoppers can purchase clothing items, and they can even return the ones that they do not like. The partnership between the two firms will also allow Walmart to gain access to a variety of fashion brands that shoppers would previously not find on the retailer’s curated options. Thread is the first brick and mortar store that has signed such a partnership with Walmart.