Walmart Fashion's Transformation: Denise Incandela on Growth, Style, and Retail's Future

Retail is entering a period of structural change driven by technology, economic pressure, and rapidly evolving consumer behavior.

At a recent industry event, Rachel Dalton of Kantar outlined four major retail themes shaping 2026 and beyond. She was joined by Denise Incandela, Executive Vice President of Apparel and Private Brands at Walmart U.S., who shared how Walmart is transforming its fashion business to meet this new era of commerce.

Together, their insights reveal how retailers must rethink resilience, rebuild shopper relationships, modernize collaboration, and redefine value to drive growth through 2030.

The Four Retail Themes Shaping 2026

Each year, Kantar develops forward looking themes that frame its commerce thought leadership. According to Rachel Dalton, success in 2026 will require retail to be fundamentally rewired with new structures, new relationships, and more flexible value chain connections that prioritize resilience and real time relevance.

Here are the four defining themes.

1. Rethinking Resilience

The macro environment remains unpredictable from both a cost and policy perspective. Retailers must build flexible operational models and supply chains capable of adapting quickly.

Resilience is no longer just about cost control. It is about agility, speed, and the ability to respond to rapid market shifts without sacrificing long term growth.

2. Recalibrating Shopper Relationships

Today's shoppers move fluidly across channels in nonlinear ways. The traditional funnel has disappeared. Consumers shop everywhere, all at once, often influenced by digital discovery and social platforms.

This requires retailers to strengthen one to one communication powered by AI, clean data, and connected technology ecosystems. The brands that win will understand how to meet shoppers in real time across touchpoints.

3. Fractured Collaboration

Dalton described increasing tension between retailers and suppliers. Short term precision and just in time retailing can conflict with long term investment planning.

Retailers must invest in new tools and data sharing capabilities to maintain strong supplier relationships while delivering speed and efficiency to shoppers.

4. Future Proofing Value

For brands, especially large national brands, relevance must be continually elevated. The growth of private label and emerging brands has intensified competition.

Value is no longer defined by price alone. It must reflect differentiation, innovation, and real time cultural relevance.

Retail Growth Forecast Through 2030

Despite economic caution, Kantar projects steady retail growth through 2030.

Globally and in the United States, retail sales are expected to accelerate over the next five years. U.S. online sales are projected to reach nearly one quarter of total retail sales by 2030.

Channel growth will be led by:

• Online retail
• Mass and hypermarket channels
• Club and value retailers

The opportunity remains significant, but competition will intensify.

The State of the U.S. Shopper

Kantar's ShopperScape data reveals a cautious but resilient consumer.

• 66 percent of U.S. shoppers say they need to be cautious about spending.
• 62 percent say they need to save extra money to manage their financial situation.

This reflects what Dalton described as cautious optimism. Consumers are engaged but selective. They are seeking value beyond price while remaining budget conscious.

What Matters Most to the Walmart Shopper

Walmart shoppers reflect this balancing act.

According to Kantar data:

• 74 percent want a stress free, frictionless shopping experience.
• Shoppers want fun and discovery in addition to convenience.
• Value is defined as what you get, not simply what you pay.
• Smartphones play a critical role in the shopping journey.

This blend of price discipline and experiential expectation has shaped Walmart's fashion transformation strategy.

From Basics to Style: Denise Incandela's Vision for Walmart Fashion

When Denise Incandela joined Walmart, the apparel business was largely known for basics such as socks and underwear.

With 145 million customers visiting Walmart stores and its website weekly, she saw untapped potential. Nearly half the country engages with Walmart each week. The traffic existed. The style credibility did not.

Incandela's strategy has focused on three pillars:

• Elevating assortment
• Modernizing private brands
• Transforming the shopping experience

The goal is to make Walmart customers' first choice for fashion while serving as a halo category for the broader store.

Expanding Beyond Opening Price Points

Walmart historically over indexed in opening price point items under 15 dollars. Yet when those same customers shopped elsewhere, 80 percent of their spend went toward higher price tiers.

This revealed a major opportunity. Walmart was covering the bottom of the closet but not the full wardrobe.

The company introduced elevated private brands such as Free Assembly and Scoop, typically priced between 15 and 40 dollars. Initially met with skepticism from store operators, these brands have since expanded nationwide and delivered strong performance across urban and rural markets.

Categories like dresses and footwear have also become growth engines.

Modernizing Billion Dollar Private Brands

Walmart has overhauled, retired, or relaunched more than ten brands in five years. Several exceed one billion dollars in annual sales.

Key changes include:

• Establishing a New York based design team
• Defining clear brand DNA and target customers
• Retiring outdated branding
• Modernizing logos, assortments, and creative direction

One example was retiring the long standing Secret Treasures intimates brand and replacing it with a modernized concept aligned with younger shoppers.

Another was relaunching No Boundaries to better resonate with Gen Z customers, correcting a mismatch where the average shopper age had drifted far beyond the intended demographic.

These moves required significant courage given the scale of revenue involved, but Incandela emphasized that sustaining growth requires bold decisions.

Elevating the In Store and Digital Experience

Walmart has remodeled more than 1,000 of its 4,000 stores, redesigning fashion departments to create cleaner layouts, improved merchandising, and stronger storytelling.

Changes include:

• Opening floor space by reducing racks
• Elevating denim presentations
• Highlighting footwear and handbags
• Enhancing visual merchandising

Digital integration plays a central role. QR codes on in store displays allow customers to shop extended assortments through the Walmart app. Interactive displays connect physical and digital discovery, reinforcing a seamless omni channel experience.

Online, Walmart is investing in premium fashion shops, improved curation, and virtual try on tools that allow customers to see themselves in products.

Changing Perception Through Influencers and Partnerships

Transforming assortment and experience is only effective if customers are aware of the change.

Walmart has partnered with designers such as Brandon Maxwell and collaborated with celebrities including Megan Thee Stallion. The retailer has also leaned heavily into influencer marketing.

According to Incandela, this is the most powerful era for perception change because thousands of micro influencers can amplify messaging quickly and authentically.

The results are tangible:

• Rising Net Promoter Scores
• Increased market share
• Growth among households earning over 100,000 dollars
• Greater cross shopping from customers who previously only purchased basics

The Bigger Picture for Retail Leaders

The conversation between Rachel Dalton and Denise Incandela highlights a broader retail reality.

Growth through 2030 is achievable, but it requires structural change. Retailers must balance cost discipline with innovation, value with experience, and speed with strategic collaboration.

Walmart's fashion transformation demonstrates how even the largest retailers can reinvent perception, elevate private brands, and attract new demographics without abandoning their core value proposition.

As Dalton emphasized, commerce must be rewired for resilience and relevance.

As Incandela demonstrated, transformation is possible when bold strategy meets operational scale.

The next five years will reward retailers that combine both.