Walmart Tries to Take Down Amazon with New Fashion Line

Walmart is launching Scenario, a sub-$25 fashion brand, to target Gen Z and millennials and recapture apparel spending lost to Amazon.

The move comes as Walmart seeks stronger discretionary sales amid slower store traffic and growing competition in online fashion. Total revenue for the fiscal second quarter (Q2) 2027 reached $187.9 billion, a 5.9% climb from last year.

U.S. e-commerce sales rose 24%, while comparable U.S. sales excluding fuel increased only 2.6%. Despite gains, physical-store traffic has become a key investor focus, with Walmart reporting a 1.5% increase in comparable traffic.