WALMART'S TIGHTROPE WALKER

As the retailer's chief merchant, Latriece Watkins is on one of the highest wires in business, balancing Walmart's upmarket move with a commitment to stay affordable.

- - BY ELIZABETH SEGRAN

DURING NEW YORK FASHION WEEK IN FEBRUARY, A wood-paneled boutique popped up in SoHo next to Louis Vuitton and Bottega Veneta. On the racks were tailored, wide-leg jeans and simple black Henley dresses that signaled understated elegance. But unlike those of neigh boring boutiques, the clothes weren't from a storied European maison de couture. They were some of the newest collections from Scoop and Free Assembly, two brands led by Brandon Maxwell, creative director at the House of Walmart.

The popup—which featured items priced between $8 and $75—was part of the Bentonville, Arkansas-based retailer's strategy to get its products in front of urban shoppers who might not be familiar with its growing array of fashion-forward budget brands. The SoHo stint was just one of the ways chief merchant Latriece Watkins—a 25-year veteran of the company who joined the C-suite in 2023—is positioning Walmart to appeal to a broader spectrum of shoppers. "Our goal is to refresh and elevate all of our fashion brands," Watkins says. "We're only 10% of the way there."

For six decades, Walmart has been the go-to retailer for rural, lower-income Americans. But at a time of inflation and economic uncertainty, Americans of all backgrounds are more budget conscious. "Prices have gone up for three years," says Mickey Chadha, a retail analyst at Moody's. "Even the wealthy are looking to save money, and they're gravitating toward Walmart." This presents the retailer with the opportunity to win over more affluent consumers, snagging them from competitors like Target and Amazon.