NEW YORK —ÌýÌýhas spent three years overhauling its mix of adult apparel to make it stylish as well as sensible for middle America. Now, the nation's largest retailer is seizing theÌýÌýshopping season to take another shot at fashion respectability.
Ìýrelaunched its 30-year-old brand for teenagers and young adults Tuesday with a new 130-piece fall collectionÌý. The retooling of the No Boundaries label is part of a strategy to get customers to think of Walmart as a place to buy cool clothes alongÌý.
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The new collection includes of-the-moment styles like baggy jeans, cropped T-shirts, faux leather corsets and bomber jackets. Most items cost $15 or less. Some pieces are made from recycled fabrics to appeal to a generation that valuesÌý. The size range was expanded to run from XXS to 5X to beÌý.
The Bentonville, Arkansas-based company is marketing the revamped No BoundariesÌý, YouTube, Pinterest and the online gaming site Roblox. It plans to test new prototypes in stores located in major college towns.
The intended audience is noticing.
![Walmart Wooing Gen Z](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=150%2C100 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=200%2C133 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=225%2C150 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=300%2C200 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=400%2C267 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=540%2C360 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=640%2C427 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=750%2C500 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=990%2C660 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=1035%2C690 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=1200%2C800 1200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=1333%2C889 1333w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=1476%2C985 1476w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/f/ab/fabc1d5d-b599-51e1-bf5c-79541fb050a0/6697b1cfc1902.image.jpg?resize=1763%2C1176 2008w)
Za'kyra Davis checks out clothes from Walmart's No Boundaries collection July 11 at a Walmart Superstore in Secaucus, New Jersey. Davis, who shops at chains like Rue21 and Forever 21, said she has been more open to buying clothes at Walmart in the past few months.Ìý
“It's basic, but cute,†Za'Kryra Davis, 16, said while looking at the camouflage pants and denim rompers at a Walmart store in Secaucus, New Jersey, where the new No Boundaries was getting rolled out last week.
Davis, who shops at chains like Rue21 and Forever 21 and gets inspired by trends popping up on social media, said she's been more open to buying clothes at Walmart in the past few months because she says they look more modern.
Walmart previously relied on a variety of suppliers with separate design teams to build the No Boundaries line, which focused largely onÌýÌýlike T-shirts and denim. The company hired a dedicated design team to create the relaunch collection, a sign of the brand's importance to Walmart's broader fashion strategy.
Still, winning over customers born between 1997 and 2012 will be challenging given Walmart's heavy competition. The generation of digital natives is known to be price conscious and willing to shop around, frequenting everything from second-hand shops and ultra-fast-fashionÌýÌýto discounters like Target, and mall-based stores like American Eagle Outfitters.
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A Walmart staff member works on a display of the No Boundaries collection July 11 at a store in Secaucus, New Jersey.ÌýTo boost its legitimacy as a one-stop shop for fashionistas, Walmart has added store mannequins and colorful displays of its clothing.Ìý
Olivia Meyer, 22, who lives in Riverview, Florida, gets inspired by trends on the internet and makes most of her fashion purchases online, typically from Amazon, to ensure quick delivery. She approved of the cargo pants and strappy tops she saw while checking out the fall No Boundaries collection on Walmart's website.
“I’m not loyal to one place,†Meyer said. But she added, “I think Walmart has a shot at targeting Gen Z and getting our dollars."
While Gen Z spends the least amount on fashion of any demographic cohort except the so-called Silent Generation, retailers are eager to courtÌýÌýbecause they represent the future, said Neil Saunders, managing director of research firm GlobalData.
“If you don't capture them today, you run the risk of them going to a rival," he said. "Traditionally, Walmart has not been appealing to this kind of younger demographic, which is why it's trying to change.â€
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A customer walks by No Boundaries merchandise July 11 at a Walmart Superstore in Secaucus, New Jersey. Walmart, the nation's largest retailer, is using the upcoming back-to-school shopping season as another opportunity to try to get taken seriously as a fashion destination.Ìý
Walmart said No Boundaries generates annual sales of $2 billion, but Saunders thinks the numbers have been stagnant for a few years. He said the retailer needs to overcome the perception that its fashion aspirations end at floral prints, pull-on pants and other styles more typically worn by older adults.
Walmart signaled just how much it wants to get taken seriously as a fashion destination three years ago when it hired Brandon Maxwell, an American designer who has dressed celebrities such asÌý, as the creative director for its “elevated†fashion brands, Free Assembly and Scoop.
In February, the company hosted social media influencers who focus on trendy but affordable style at a fashion show that featured Maxwell's designer collection, which is sold at high-end Saks Fifth Avenue and Neiman Marcus.
“It’s always about the women in my life who define what I do, and it’s no different at Walmart,†said Maxwell, who mingled with the Walmart guests during a luncheon after the show.
To boost its legitimacy as a one-stop shop for fashionistas, Walmart has added store mannequins and colorful displays of its clothing. Under the stewardship ofÌý, executive vice president of apparel and private-label brands, the company has featured more than 1,000 brands and partnered with celebrities likeÌý.
Incandela said at a recent industry conference in New York that Walmart's scale — it operates more than 4,600 stores in the U.S. — can help drive quality and low prices. But the big growth opportunity in clothing is with the Gen Z customer who “cares about style," she said.
“We have created a brand that is more modern, has better quality, has silhouettes that are more relevant to the Gen Z customer,†Incandela said. “We’re improving the shopping experience, but we have to change that perception."
At the Walmart in Secaucus, Elizabeth Fernandez, 58, and her daughter, Destiny Fernandez, 38, said they found the women's clothing more appealing than in the past. They were also drawn to the overhauled No Boundaries line. Their shopping cart brimmed with pants, shorts, tops and skirts drawn from throughout the store.
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Elizabeth Hernandez, left, gestures towards her daughter Destiny Hernandez as they look at items from Walmart's No Boundaries collection July 11 at a Walmart Superstore in Secaucus, New Jersey. In hopes of resonating with younger members of Generation Z, Walmart has revamped its 30-year-old brand for teenagers and young adults.ÌýÌý
Citing the cropped puffer jackets and different denim washes on the racks, Destiny Fernandez judged Walmart to be on the mark in the way it had recycled and refreshedÌý.
“It's all stuff that is coming back,†she said. “So I am going to take a look.â€
Does back-to-school spending increase credit card balances?
Does back-to-school spending increase credit card balances?
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September, or August in some parts of the country, is often considered one of the busiest spending months of the year. According to the National Retail Federation (NRF), a trade organization that predicts spending at department stores and other retail outlets, back-to-school spending will produce an additional $130 billion in sales in 2023, a new record for back-to-school season. Many states, for their part, offer sales tax holidays during that time of year to encourage additional local spending.
While it's easy to see every part of the calendar year as an opportunity to spend, back-to-school spending is often considered second only to end-of-year holiday spending in providing retailers with a sales tailwind. To see if this assumption holds up, reviewed national sales data to see if, in fact, there's a noticeable impact on consumer spending as summer turns to autumn.
August and September: Busy bees or dog days?
![August and September: Busy bees or dog days?](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=150%2C123 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=200%2C164 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=225%2C184 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=300%2C246 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=400%2C328 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=540%2C443 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=640%2C524 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=750%2C615 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=990%2C811 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=1035%2C848 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/d/ca/dcaa6a7b-90e5-5cd1-9d81-7cd3f3774b16/651b2f940ee3c.image.png?resize=1080%2C885 1200w)
When looking at the past 10 years of retail sales data from the U.S. Census Bureau, August and September don't seem to be especially huge for retailers. The average change from July to August since 2014 has been a tepid 1.7% increase, which is lower than the last three months of the year. And September shows an obvious decline, where spending is 6.2% lower than it is in August.
There's at least one obvious reason September retail sales show a persistent decline; it has one fewer day than August, which reduces the opportunity to shop. In addition, September includes the Labor Day holiday, which, despite being as much of an excuse for a sale as most other holidays, isn't usually considered one of the busiest shopping days of the year.
Store card, credit card balances don't show back-to-school spending upticks
![Store card, credit card balances don't show back-to-school spending upticks](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=150%2C225 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=200%2C300 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=225%2C337 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=300%2C449 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=400%2C599 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=540%2C809 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=640%2C959 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=750%2C1124 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=990%2C1483 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=1035%2C1551 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/c/8d/c8ddeb82-c40f-52ab-b85b-7dd428bd2707/651b2f9472f4e.image.png?resize=1080%2C1618 1200w)
Looking at recent credit card balance data from Experian, which shows how much card balances shift from month to month, August and September don't appear to be months where balances substantially increase.
Credit card balances increased an average of 0.9% during August, which is in the middle of the pack as monthly increases are concerned. And since 2019, September balances increased by an average of only 0.1% from the prior August. The usual pattern, as this data confirms, is that consumers spend January, February, and March paying down large balance increases that occur in December, with spending rising or falling modestly for the remaining eight months of the year, including back-to-school season.
Admittedly, this five-year window is a bit limited, as the pandemic resulted in temporary but drastic short-term changes in consumer behavior.
Federal Reserve data going back 15 years on revolving credit reinforces more recent findings
![Federal Reserve data going back 15 years on revolving credit reinforces more recent findings](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=150%2C123 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=200%2C164 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=225%2C184 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=300%2C246 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=400%2C328 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=540%2C443 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=640%2C524 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=750%2C615 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=990%2C811 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=1035%2C848 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/d0/4d06ef75-e529-549a-88fe-60dfe6c24691/651b2f951aadf.image.png?resize=1080%2C885 1200w)
Going further back, using data on revolving credit tracked by the Federal Reserve, doesn't show much difference from the Experian data. August spending increases by 0.7%, on average, while September spending shows a modest decline of 0.2% in revolving credit balances since 2008.
Average credit card balances in September 2023 and beyond
This year, as the business media has repeatedly reminded their audiences, will be different. This is likely to be the case not only for the month of September, but also for the upcoming holiday season, when credit card spending really begins to pick up. The end of 2023 will prove to be challenging for both consumers and retailers for the following reasons:
- Tightened credit: Lenders are becoming choosier about how much credit they extend and to whom, implying that consumers will spend less than in previous years.
- Higher interest rates and APRs: Higher have already more than they did a year ago. But going forward, higher credit card APRs, currently averaging more than 22%, may result in consumers curbing their spending. Or at least it may shift some of that spending away from interest-accruing card balances to alternative payment plans, like buy now, pay later.
- Student loan payments: They'll and may take a significant bite out of the discretionary income student loan borrowers might otherwise use for back-to-school, holiday, and other spending.
So if credit card balances are shown to have increased in September 2023, it will likely be due to accrued interest more than increased spending.
All in all, back-to-school spending, such as it is, may be a bit overhyped, pumpkin spice lattes notwithstanding. But in the coming months, seasonality will likely play a secondary role to larger economic forces.
Methodology: The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.
was produced by and reviewed and distributed by Stacker Media.
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