Countdown to Kamali, Wal-Mart’s New Fashion Foray

BENTONVILLE, ARK. —The blooming partnership between Norma Kamali and Wal-Mart, scheduled to debut in 350 stores this fall, may come as a surprise to some. After all, piggybacking on designers in mass fashion is Target’s territory. And would Wal-Mart shoppers recognize that Norma Kamali is an iconic New York designer? Probably not.

Style aside, the merger nudges Wal-Mart into the celebrity-driven retail space that’s anything but ‘Back To Basics.’ It seems that every week, exclusive labels come into the marketplace. Some are driven by celebrities, like Rachel Bilson’s upcoming juniors’ line for DKNY jeans; others entice with designer names, i.e. Dana Buchman for Kohl’s.

Discounted designer names proved that fashion can exist where customer-friendly prices bring in profit—Isaac Mizrahi’s merchandise cashed in at an estimated $300 million a year for Target. Treading in Target’s footsteps, it looks like Wal-Mart has embarked on a mission to bring high fashion into a world of tanks and tees.

Currently, Wal-Mart appeals to two distinct shopper personalities, suggested Marshal Cohen, chief industry analyst for The NPD Group: the core value shopper, for whom price is the primary driver, and the new generation value shopper who is willing to compromise on price in exchange for higher quality and fashion.

“The consumer will be pleasantly surprised,” said Cohen. “Norma always had the ability to enhance the consumer’s comfort level and understand fit, something that has challenged the fashion industry for decades, and she has always been doing that. I’m not a big fan of upper-end designers going down, but this one makes a lot of sense.”

Although Wal-Mart declined to comment on the details of Norma Kamali’s entrance into the mass market, the company confirmed that the multiyear agreement would span multiple categories that include women’s apparel, kids’ wear, footwear, accessories and home. The Principle concept for Kamali’s collection is the ability to create an entire wardrobe with her signature items. All pieces will be produced via a licensing agreement with Cherokee Inc.

The big question on everyone’s mind circles around the design. Kamali’s portfolio includes the invention of the sleeping bag coat, ingenious swim suit designs and partnerships with Everlast and Spiegel, to name a few. Her flagship store off of 5th Avenue in New York feels zen-like and resembles a tranquil spa filed with melodic tunes, Grecian sculptures and dangling stars.

The three levels offer fluorescent Everlast jersey tops—at around $300—gowns, suiting and plenty of swimwear. In addition, the wellness center on the bottom floor offers tea, an assortment of crystallized rose and violet petals and various beauty products including lotions and perfumes.

While the serene atmosphere of the New York store differs drastically from busy, rack-filled Wal-Mart floors, analysts believe that Kamali’s designs will fit right in. “When I think of Norma Kamali, I think of wonderfully innovative design,” said Jayne Mountford, vp of trend reporting for Stylesight. “She brought back the sleeping bag coat. Really, everyone running around in puffy coats is inspired by Norma Kamali. She has been known as cutting edge and proved, in the past, that she can deliver product that can work in the mass market.”

The partnership will help Wal-Mart to secure the boomer consumer, as well as connect with the youth market, as long as the collection fits a certain criteria. “Fashion is the highest risk of any category that you can try to retail,” said Cohen. “You have to get the right fit, the right color, the right price—all have to be right [and] all have variable dynamics based on consumer taste levels.”

Even customers who appreciate basics crave novelty, especially in the economically strenuous climate. Purchasing another T-shirt may not be worth the extra dollar, even if it’s at a good price, but if the tee has a unique element, that’s a different story.

During a recent conference call, Dottie Mattison, senior vp of women’s apparel and product development for Wal-Mart Stores, mentioned that consumers could purchase key items for the family at $10 or less. She also said that Wal-Mart plans to continue with this strategy.

Will Norma Kamali pieces fit in that price bracket? Maybe. Or maybe Kamali will be able to bump up the prices with star, visual merchandising.

Mattison also referred to using more elaborate merchandising to convey a message to customers. “It’s very important for us, in apparel, to be able to back up and tell an authoritative story, to tell a real story,” she said.

With that in mind, perhaps Kamali’s 5th Avenue store ambiance can be translated into the vast, open Wal-Mart floor. The retailer has been changing its model, if ever so slightly, in the grocery, health and electronics departments. The entrance of Sony, for example, gave CE a boost. Mattison commented that Wal-Mart “feels strongly” that apparel will “follow that same road map” to reach sustainable results in the long term.

No matter what surprises await customers and analysts in the fall when Wal-Mart unveils the Norma Kamali collection, the introduction of this iconic designer may very well send a ripple effect through the entire apparel department. “If this is successful, Wal-Mart will be all over it, time and time again,” said Cohen.