In the past, Wal-Mart's so-called "fashion for all" usually meant shapeless, dowdy clothing hanging in warehouse-style rows.
Now, the Arkansas-based discount retailer is upping the style quotient and spicing up its floors with fashion-forward ensembles that seem to be cherry-picked straight off Fifth Avenue. Wal-Mart has also revved its marketing machine, buying slick, multiple-page ad spreads in fashion magazines like Vogue while wooing editors at Women's Wear Daily.
Wal-Mart's biggest opponent, Target, is also aggressively chasing the trends, most recently with a series of limited-edition collections from three international designers.
The democratization of fashion -- that is, bringing couture-esque clothes to the penny-pinching masses -- is an industry-wide trend, according to fashion analysts.
James Hurley, a senior research analyst with New York-based Telsey Advisory Group LLC, says discount retailers are taking a cue from European chains like Zara and Hennes & Mauritz (H&M). Both are companies that study designer fashion shows and churn out remarkably similar styles to their stores within weeks. Runway-ready trends are no longer exclusive to the socialite set.
"In general, the fashion cycle is becoming sharper and more immediately accessible," Hurley said.
The reason? Style has bubbled to the top of everybody's consciousness -- not just teenaged mall rats -- thanks to the proliferation of celebrity-centric television shows and shopping magazines, Hurley says.
Couture-wise, fashion empires such as Dolce & Gabbana and Prada are following suit by expanding their mid-price "diffusion" lines (in this case, D&G and Miu Miu, respectively). Relying on their parent brands' recognition and cachet, these diffusion lines are still on the pricier side: a D&G black, bustier-topped dress costs a wallet-walloping $395, for example. But it's still a far cry from the $1,250 you'd spend on a Dolce & Gabbana wool crepe couture dress.
On the flip side, discount retailers are developing their cachet from the ground up.
Target began cultivating its relationships with well-known designers in 2000 with a line of home furnishings from architect Michael Graves. Then came girly, flower-festooned home accessories from designer Cynthia Rowley; smart, business-like apparel from Isaac Mizrahi, and antique-inspired furniture from Rachel Ashwell, creator of California's Shabby Chic boutiques.
In February 2006, Target tackled couture, debuting the first of three Go International collections (collaborations with international designers). The last of the collections, the feminine Paul and Joe collection of $16.99 cozy thermal tees and $49.99 Technicolor blazers from French designer Sophie Albou, is still in stores.
"Target guests are fashionably sophisticated -- they're aware of the latest trends and always on the hunt," said Target spokeswoman Lalena Luba in an e-mail. "The collections have truly resonated with our guests."
Customers have taken notice -- Target's sales have shot up consistently throughout the summer, with total sales jumping 9.2 percent in August alone. Luba credits the retailer's fashion-oriented efforts with drawing more attention to the brand.
Perhaps more surprising is Wal-Mart's successful foray into apparel, traditionally one of its weakest-performing sectors.
The retailer's most recent stab at fashion-forward merchandise is George ME -- an offshoot of the more mature George line. Conceptualized by Mark Eisen, a sportswear designer known for classic shapes, Wal-Mart's latest offerings are far from a flop in the fickle fashion world.
Next: Chanel-inspired duds at Wal-mart >
