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June 20, 2024
Can Walmart Capture Gen Z With No Boundaries’ Refresh?
Walmart is relaunching a 30-year-old store brand, “No Boundaries,” with broader assortments, elevated styling, and major digital marketing muscle in hopes of capturing a larger share of Gen Z’s wallet.
“We are going after this Gen Z target market in a big way,” Denise Incandela, EVP of fashion at Walmart U.S., said last week at the CommerceNext conference in New York, according to Reuters. The annual volume for No Boundaries, often abbreviated as “NOBO,” is already about $2 billion.
As part of the brand refresh, Walmart for the first time hired a team of dedicated fashion designers to the No Boundaries brand, reflecting a shift in how the retailer is building and reintroducing a brand for a specific demographic.
In an interview with WWD, Incandela said that Walmart typically used input from several manufacturers to churn out “volume driving programs,” but it is now thinking about brand DNA and creating “a cohesive brand with a clear reason for being.” Specifically, the idea is to position No Boundaries as a brand that “inspires and celebrates the potential of self-expression.”
In its announcement, Walmart described No Boundaries’ DNA as “style rooted in casual trend and weekend wear with of-the-moment, youthful essentials designed to make their own.”
Style highlights include baggy-fit jeans, drop shoulders, cropped tees, and oversized sweat sets with a focus on mixing and matching. Performance fabrics like seamless stretch, power mesh, lux fleece, and authentic denim are being highlighted.
No Boundaries’ updated range is broadened to 130 pieces across apparel, intimates, shoes, and accessories with fits ranging from XXS to 5X in young women’s and XS to 3X in young men’s. The brand will introduce its first sleepwear line and the first-ever plant-based bra pad made from over 75% sugarcane in select styles.
In marketing, No Boundaries’ launch will be backed by a major marketing push on TikTok, Instagram, and Roblox.
Budget prices will be core to the label’s appeal, with pricing closer to Old Navy than Target. According to Walmart, 80% of the products across the range are below $15, including printed tees, shirttail dresses, and short shorts at $5.
Trial of the line is expected to benefit from Walmart’s position as America’s most-visited store. Jen Jackson Brown, SVP of Walmart U.S. fashion brands, said, “We have 145 million U.S. customers shopping with us in stores and online each week, and the new No Boundaries brand is designed and marketed with intention to reach this young adult audience by focusing on fit, quality, style and fabrics that resonate with them.”
General merchandisers as well as department stores have long struggled to reach younger consumers. Target, often commended for its fashion offerings, introduced three store brands in 2018 — including its Wild Fable and Original Use apparel lines. At the time, Coresight Research found that Target’s apparel appeal “tails off rapidly beyond the 30–44 age group.”
Discussion Questions
What do you like about Walmart’s updated approach to reimagining its No Boundaries product range for Gen Z customers?
Has reaching the Gen Z audience become more critical for Walmart?
Why have general merchandisers as well as traditional department stores faced continued challenges with Gen Z fashion?
Poll
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Walmart has been on a push to attract younger shoppers for a while now. It is starting to make some inroads, especially on its marketplace. However, there is still a way to go in stores and in categories like apparel. The refresh and update of No Boundaries (which is already a significant label in sales terms) should help move the dial. From what I have seen, the new designs are more contemporary and there are some nice on-trend pieces that should appeal to Gen Z. However, the main challenge will be getting this in front of the right audience – which is why it is pleasing Walmart is using social channels, including Roblox, for the launch. Walmart’s efforts in finding new channels to reach younger customers has been very impressive. Combining this with more relevant fashion products should produce results.
If the younger consumers can find the right products at the right price online or on various social media channels, they will buy them. While some are still focused on the right brand, many today are more focused on showing off the money they’re not spending versus what they are. Just don’t expect them to go into the physical Wal-Mart store.
Maybe. If you have seen the most recent remodels in WM stores, the apparel departments are more inviting , brighter and more open. They are beginning to look like department store apparel departments. I saw this brand featured today at remodel in my area and it does make you gravitate to the area. Social media will definitely help . And yes I did see a lot of gen z’ers shopping that section today – along with Ralph Lauren.
Is it really a “relaunch” when the brand is as old as the demographic it targets? Anyway, from the description, it’s not aimed at me – or people even vaguely like me ( code for: expect “not to be political ” wordage further down the comments) – but I’m not sure that really matters; what matters is that WalMart is still a place people buy apparel from out of necessity, rather than choice. So efforts to be
coolkewl or trendy will remain at odds with realityIn Canada and the States, I’ve noticed Walmart’s apparel assortment keeps getting better, brighter and more stylish. Adding Justice and Reebok lines was a great start. This week, I found myself stopping my cart mid-stride and thinking, “wow” because Walmart keeps upping its apparel game with visual impact I normally associate with Target.
Thanks Lisa. And let me reiterate: mine was not a comment on the quality of WM’s offering(s). OTC, my point was that no matter how good the quality they will be held back by perception. For those who aren’t into bragging that may not be an issue, but the where’d ya get that? word-of-mouth will continue to be a challenge.
Thanks for clarifying, Craig. I see what you mean.
Walmart has a well-thought out plan to attract Gen Zer attention in No Boundaries. Over 80% of the line is sensibly priced $15 and under, with array of materials and shapes/sizes, with promotion on TikTok, Insta, Roblox. A winning combination.
One topic left unstated is what % of Gen Zers will also consider environmental impact of sustainability or material sources into their equation. It may be small and inconsequential for Walmart. But there is a core of Gen Z customers who will care about it, even just partially.
I like Walmart’s clear focus on designing the No Boundaries brand, assortment, pricing and promotion strategies with Gen Z values and habits at the heart of every decision.
Promoting this casual, affordable private brand where Gen Zs already watch and play is a smart way to embed their apparel needs into their media habits.
Reaching Gen Z is a strategic imperative because earning their loyalty can help Walmart maximize their customer lifetime value over a longer period than older cohorts.
I have heard it mentioned by some of my close friends in Bentonville that “No Boundaries” might be Walmart’s last effort to capture a piece of the Gen Z fashion market. Until now, Gen Z fashion belongs to Target, at least for adults under the age of thirty.
I’m a huge fan of Walmart, it’s business model, Sam, and all the amazing history, and even its dominance, but will all due respect, Walmart is what it is, and I don’t believe it will be a first of mind destination for Gen Z fashion shoppers.
The approach is low budget with 80% of the assortment available for less than $15, per a company blog post, but I’m not sure that fashion has credibility at prices as low as $5.00, even for tees. Those prices are lower than Old Navy and Target but that might not matter to Gen Z fashion-conscious consumers.
I have looked at some of the ads, and they appear to be racially and ethnically diverse, variable appearances including pink hair, maybe LGBT, straight arrows, and young people who are thin, overweight, tall, short, and more. The brand will be inclusive in sizing. Some of the models appear to be older than 30, so good luck with that.
– Db
I like this brand. I would wear some of their assortment, and I am over 30… over 40…
Fashion can have credibility at low prices: Shein and Primark both prove that. Whether Walmart can build this same credibility is another matter entirely.
Primark…!!! Exactly! Toooootally different perception in the eyes of the consumer.
Great point!!! I love going into Primark stores when overseas.
It’s well worth the effort for Walmart to keep improving its apparel assortment and to reach out to younger shoppers. But is No Boundaries the answer? The brand has gained little traction in 30 years, so why use it as a platform to appeal to customers in their mid-teens to upper 20’s? Ultimately, the product development is key, but why not launch it under a new brand umbrella instead of “new and improved”?
Walmart’s astounding success is because it is Walmart. But it is also “your mother’s store.” Surely, Gen Z will gravitate to Walmart when their lifestyle changes, as did their mothers 20 years ago and their grandmothers before that.
That being said, This is an excellent effort. Walmart got the style and the price. If they use the appropriate social media, they might generate a trip for trial.
I agree, but I also think Walmart has been moving the dial on younger consumers. Its marketplace is now more rounded and some of the newly refurbished stores are way more appealing. In beauty they’ve put a lot of effort into bringing more interesting brands into stores and it has helped them widen the appeal to younger shoppers. There have been various posts on TikTok for quite some time asking whether Walmart is the new Target. Early days, but I like the direction!
Gen Z is an influence in retail. Walmart must give them a reason to come to their store as a regular part of their life. The key is the products that get them to do so, and something that is specific to their interests will help. But it takes more than one product (line) to get them to come back again and again. I would be looking for a Gen Z targeted marketing strategy that promotes ongoing business.
Walmart has been doing a fantastic job recreating their brand, especially since the pandemic. Walmart+ is a big success. E-commerce in the first quarter of 2024 was up 21%; overall revenue was up 6%. Contrast this with a 3.7% decline at their largest US competitor, Walmart, which is thriving. That said, they continue to be perceived as places where people go for great prices and acceptable quality but not for trends or fashion. This is especially true in apparel and really true for young fashionistas. They may buy basics at Walmart, but fashion? Not so much.
Part of this perception, in my opinion, has to do with the store experience at Walmart. Despite upgraded apparel departments, new fixtures, new flooring, new mannequins, and smarter graphics, Walmart is still a difficult place for apparel shoppers. It feels too much like you are buying your clothes at a grocery store. In contrast, Target has done a much better job of creating a branded experience. At Target, fixtures, lighting, and overall ambiance feel more like Kohl’s or Penny’s. This difference, I believe, influences the perception of brand and quality, which are important to Gen Z. To add on, Target has done a great job partnering with high-profile designers that matter to Gen Z (et al.) shoppers. Until Walmart can move the needle on this perception, it will be challenging to move the needle with younger apparel shoppers.
This is a well-timed move by Walmart and perhaps intentionally so. Walmart’s plan to refine and focus No Boundaries comes just as Rue21 has declared bankruptcy and Limited Too launched a cryptic social media campaign teasing a comeback next month. Walmart has had a hard time shaking off the hype surrounding its fashion forays years ago. Since then, its apparel brands have become near-indistinguishable and basic. As with most Walmart initiatives, the NoBo reboot checks many boxes.
This move is going to require the patience to experience and endure the pain of competing in the fashion business. NOBO’s DNA is described as “style rooted in casual trend and weekend wear with of-the-moment, youthful essentials designed to make their own.” So Walmart wants of-the-moment product, designed and ordered 6-12 months in advance, to sell at value price points on thin margins. That’s a tall order, but it’s an order Walmart has to take on in order to cultivate this tier of customer. And yes, marketing and social media will play a huge roll. Walmart stores are not quite at the hip and cool level yet when it comes to shopping for fashion. Don’t get me wrong, I love Walmart. But there’s a difference between this boomer buying a shirt-jac and carpenter pants for chopping fire wood and Gen Z perceiving Walmart as the go-to store for fashion.
As fickle as they can be, the Gen Z customer is all about value and brands that speak to who they are. Walmart’s investment in and commitment to No Boundaries having a DNA/ethos that resonates with this demographic, is appealing in style and offered at incredibly attractive price points, will translate into a win.
Interesting that in our latest research, Walmart was the most mentioned place that Gen Z shoppers had shopped for food and groceries. Clearly Walmart is resonating with them (and this is in-store shopping, not online) and this push may accelerate that momentum.
Digital-primary the way that Gen Z lives is something Walmart hasn’t had a good track record of but this appears to be a solid attempt with a clearly differentiated private label brand. The financial savviness of Gen Z is well documented. Meeting Gen Z where they are with a on-trend value play should be an effective way to make in-roads.
I like that they hired dedicated fashion designers and focused on Gen Z’s love for self-expression. Reaching Gen Z has become crucial for any business, because they represent the next big wave of consumers with significant power to influence spending decisions. General merchandisers and traditional department stores have struggled with Gen Z fashion because they often miss the mark on trends, personalization, and digital engagement. Walmart’s use of social media and trendy, affordable styles shows they understand and value this demographic’s preferences.