What: Walmart US expands its luxury offerings by partnering with Rebag to sell certified pre-owned accessories from Chanel, Prada, and Fendi through its online marketplace.

Why it is important: This move represents a crucial step in Walmart's marketplace evolution, combining its e-commerce capabilities with certified luxury offerings to compete more effectively against Amazon whilst tapping into the growing resale market.

Walmart US has made a strategic move into the luxury resale market by incorporating pre-owned designer accessories into its online marketplace through a partnership with Rebag. The collaboration brings certified pre-owned items from prestigious brands including Chanel, Prada, and Fendi to Walmart's digital platform. This initiative is part of the retailer's broader marketplace strategy, with Rebag-certified products ranging from hundreds to thousands of US dollars. Michael Mosser, Walmart Marketplace VP, emphasised the company's focus on expanding its offerings with hard-to-find items, while Rebag CEO Charles Gorra highlighted how the partnership would help expand his company's footprint. This development follows Walmart's recent retail innovations, including drone delivery service and AI-powered shopping assistance, demonstrating the company's commitment to adapting to evolving customer demands and expanding its market reach.

IADS Notes: Walmart's partnership with Rebag for luxury accessories marks a significant evolution in its upmarket strategy that began taking shape in 2024. In May 2024, the retailer first tested luxury offerings through its marketplace, which led to considerable discussion about the democratization of luxury retail. This latest expansion aligns with Walmart's remarkable success in attracting affluent consumers, as evidenced by November 2024 data showing 75% of its market share gains coming from households earning over USD 100,000. The company's digital transformation has been equally impressive, surpassing USD 100 billion in e-commerce sales and implementing AI-powered innovations. This strategic move into certified pre-loved luxury accessories through Rebag builds upon Walmart's successful year of marketplace evolution, which saw an 82% surge in share value, demonstrating the retailer's growing confidence in premium market segments.

Walmart US adds Chanel, Prada, Fendi to online offerings