Walmart + Tommy Could Be Walking Down the Aisles

Posted by: David Kiley on September 27, 2005

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If Walmart is really courting the financially ailing Tommy Hilfiger, as its being reported, it could be a win-win for both brands, though a hard pill for Tommy to swallow.

Tommy Hilfiger’s brands isn’t exactly burning up the fashion scene. But Walmart could make its financial troubles go away with a cash infusion, and then make an investment in TH as its house brand. It’s not so far gone that some good management and money couldn’t make TH a solid mid-level brand at Walmart.

For Walmart, it gives the giant retailer a bit of the designer cachet it covets in its smaller rival, Tarjay, which , of course, has designers like Mossimo Giannulli and Isaac Mizrahi.

Walmart is trying to make the kind of moves that Wall Street notices. It’s revenues and earnings per share have climbed under H.Lee Scott Jr., but its share price has fallen as the company operates under a nagging overhang of political/social discomfort over its manufacturing, sourcing and expansion practices. Another brand that could be for sale that would be a good fit for Walmart? How about urbanwear brand Roc-A-Wear?

Reader Comments

Jim

September 28, 2005 4:26 PM

Walmart always knows what it is doing and management takes hard raps for low prices always...we need more Walmart kind of managers in corporate America

marie treihaft

September 29, 2005 9:52 AM

tommy the all american designer makes sense to me, walmart being the all american discount store!

Brad

September 29, 2005 9:56 AM

But can the purchase of a brand (any brand really) by WalMart cause the customers who frequent Target to consider WalMart for things other than cheap dishes and food?

WalMart itself as a brand is a strong negative for those customers. This differs from Kmart (with Martha Stewart) where the Martha Stewart brand actually brought luster to the Kmart. I don't see how Tommy Hilfiger will do the same - especially since as you remark it "isn't exactly burning up the fashion scene"

That was the great coup of the old WalMart "Buy American" strategy as it wrapped the WalMart brand in a strong positive way.

kristen

October 2, 2005 2:36 PM

i think tommy hilfiger selling out to walmart is a horribly bad idea...especially for teens because no teenager wants to buy their clothes from walmart and i love hilfiger and i really dont want to own clothes that walmart sells

Lance

October 3, 2005 7:16 PM

Would this mean that the winner of the CBS summer series "The Cut" (Tommy Hilfiger), be now working for Wal-Mart instead of the fashion house he and the other contestants competed against each other for?

Thomas Ponte

October 10, 2005 11:57 PM

I love fashion and Labels I believe that Tommy Hilfiger being sold to Walmart would be good for both right now but it will only cheapen the label name in the long run. I respect that the label needs financial help. I think tommy just needs a new infusion of designers to make the label new and fresh.I used to wear alot of Tommy but I like designers Dior and Micheal Kors ,YSL,Gucci and most of it I have found at consignment shops just because I pay the minimum for it. I love vintage it is timeless I know I would never see that kind of style in Walmart.

walmart associate

October 18, 2005 10:26 AM

I currently work at walmart, and have heard the same rumors. To be honest when I heard that Wal-mart is trying to buy out Tommy Hilfiger I got really upset. I love Tommy clothes, and if Walmart buys them, the clothes will become cheap and the quality of the item will decrease. Tommy backs there clothes with a one year warrenty. Do you think Walmart will take the clothes back if there is a hole in them after a year? Of course not. While Tommy will give you a new pair. It's just a way that Walmart can control one more thing. Not many people know that Walmart bought out Toys R Us almost a year ago. The name hasn't changed, but where I live that means that they have control over all the toys in my area. And Walmart is trying to become a bank as well, and are being fought by the banking business. Everyone needs to wake up and stop shopping at walmart, and turn to other businesses otherwise you won't have a choice as to where you shop, or where you go to get your money, because the only place that will be running it is Walmart. Many may ask why an assoicate is saying all this about the company I work for. Well, I may work there, but I'm tired of them treat me and several of millions of people like crap. And the fact that they are trying to take over the world, buy buying all these companies bothers me. I've even attended meetings where management said " the next company they were going after was K-mart" and how they were going to force them out of business. And they are sure trying. I don't want walmart to be the only place I can go for anything in life. Do you? So when it comes down to Tommy selling to Walmart, I'm against it, and will be writting a letter to the Tommy corp. I hope everyone else will do the same after reading this. Especially if you want to keep Tommy a quality company, selling quality clothes. I'll pay the extra prices of Tommy Hilfiger for the quality.

Disappointed Tommy Lover

November 21, 2005 8:53 PM

I love Tommy but if it's sold at Walmart I don't think I will be buying Tommy anymore. Like the Walmart associate said (Oct. 18), I wouldn't want Walmart to be the only place to buy. I love going to department stores like Dillards and Foleys to look at and get great, quality clothes, and to be honest I don't think Walmart will have the same quality. I like Walmart for certain things but not for clothes shopping. This will really will be a benefit for Walmart of course but this will really be a disapointment for those Tommy lovers, like myself. I will definately not shop for my clothes at Walmart.

katie

December 2, 2005 4:55 PM

What a great move by wal-mart this could be. Wal-mart is probably the strongest retail store in america and is becoming very strong internationally as well. I used to love tommy clothes and I think this acquisition would "cheapen" the brand. Yes, it would be sad to see tommy on a wal-mart rack but this would be a great chance for wal-mart to increase the quality of their clothing lines. Which is exactly what target has that wal-mart does not.

Misty

December 7, 2005 4:18 PM

I will not continue to purchase Tommy if they sale to Wal-Mart. I think Tommy is too upscale for WalMart. I do not believe that you will continue to get the same value of clothing. I can't picture WalMart selling shirts for $40.00, jeans and pants for $79.00 and sweaters for $39.99-$79.99.

Michael

December 15, 2005 8:40 PM

If Wal-Mart buys Tommy, its over with them. I have spent $$$$$$$$$ on this line and will NEVER go to a WAL MART for it. Tommy has been in a spiral for years and needs to take a page out of EDDIE BAUER stores. I will just buy Eddie clothing now.

lee

December 28, 2005 9:09 PM

who cares

amy

January 27, 2006 1:37 PM

Great for Mr. Hilfiger...and great for Walmart!...Bad for all of us who enjoyed buying "Tommy" at upscale stores, which held its style and class!

Josh

March 2, 2006 12:59 PM

So what if Tommy is in Walmart. If I see a pair of blue jeans in Walley World that I like, I buy them; not because of the brand name tatooed to ass of 'em, but rather I look at comfort, style, and "will these work for me". Unless maybe you're fourteen and worried completely about your social standing amoung pimple faced freshman, who really cares if you bought your jeans at Walmart, Dillard's, or Goodwill....

Josh Shawnee, OK

Diana Arana

March 4, 2006 7:40 AM

It's to bad that Tommy will go into the well known WELLFARE store Walmart. I wish Walmart never exsisted. It's a shame that such a low life company is trying to take over the world. It is only hurting US the AMERICAN!!! Stop shopping from this GREATTIE company. It is going to kill future jobs of people that work in other retail and grocery stores. Because of them being so competitive it is stealing from our fellow Americans taxes to pay for the welfare that Walmart employees have because this stupid store pays their employees pennies to the dollar.STOP SHOPPING AT WALMART THE LEADER IN STEALING OUR MONEY!!!!!!!!!!!!!!!

Tasha

November 25, 2006 12:15 PM

If Walmart picks up the Tommy Hilfiger brand it can count on losing at least one loyal customer, ME! Tommy was once worn as a statement, now what would is state, I buy cheap clothes! That is not a statement I care to send. By no means do I think that I am rich or better than anyone else but some people chose to spend their money different ways. I chose to put my money into my appearance and clothing. I like to feel good about myself. Tommy just wont send that feeling out anymore after being a Walmart product.

tl

March 11, 2007 9:30 AM

I wear Tommy a great deal, but if it is sold out to Walmart. GOODBYE Tommy, I do not buy my clothes from Walmart. I Guess all good things have to come to an end.
I guess Abercrombie or Geoffeory Beene will get my business if this happens.

K.K.Karthik

September 4, 2007 7:41 AM

Dear sir,
Wal Mart Buying address in Bangalore or India contact address with phone number for my personal purpose.
Tahnking you,
Your's,
K.K.Karthik

Mary camper

October 15, 2007 3:52 PM

Tommy jeans are wonderful. If I could get them cheaper at Wal-mart I would buy them even more often. Hurry and get them there. My jeans are wearing out.

Petey P

December 18, 2007 8:48 PM

I have a closet full of tommy clothes. Some bout years ago and still looks new. All the clothes I've ever bout @ walmart fade shrink or tear after a couple of washes. I think tommy will too so I don't think they should sell. I work hard for my money and what I spend it on.

katie

January 29, 2008 11:18 AM

i love walmart and i need a job really bad my family is running low on money can i please get hired i need the job really bad rigjht now to kind of get out on my own in my nice little own apatment.

Tanvi Issar

May 18, 2008 11:43 PM

The brand image you have created in the minds of customers is mind blowing ,I the MBA lecturer if given an opportunity would like to render my services to the company .

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News, opinions, inflammatory meanderings and occasional ravings about the world of advertising, marketing and media. By marketing editor Burt Helm, Innovation Editor Helen Walters, and senior correspondent Michael Arndt.

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