Walmart's Beauty Boost: Premium Expansion and Start Accelerator

Walmart, the retail giant, is making significant strides in the beauty industry with its recent expansion into premium beauty offerings and the unveiling of the third cohort of its Walmart Start accelerator program. This move not only aligns with current consumer trends but also positions Walmart to compete more effectively with industry leaders like Amazon and Ulta Beauty.



Premium Beauty: A Strategic Move

Walmart's foray into premium beauty began in August 2024 with an initial assortment of 20 brands and over 1,000 stock keeping units, focusing heavily on skin care and hair care. As of March 2025, the retailer has expanded this offering to include over 80 brands and more than 2,500 items. This expansion is a strategic response to the growing consumer interest in premium beauty products, particularly in the skin care and hair care categories.

Vinima Shekhar, Walmart's beauty vice president, highlighted the success of this initiative, noting that brands like L’ange & Victoria’s Secret have seen double-digit growth, with T3 hitting triple-digit growth post-launch. This success is a testament to Walmart's ability to introduce new and exciting brands through its marketplace model, which allows for a seamless integration of online and offline experiences.

The Walmart Start Accelerator Program

In addition to its premium beauty offerings, Walmart has also unveiled the third cohort of its Walmart Start accelerator program. This program, which began three years ago, provides smaller suppliers with access to resources such as education, mentorship, and brand activation. The third cohort includes brands like Maison 276, Nappy Styles, Lattafa, and Kativa, each bringing unique offerings to the beauty market.



Strategic Advantages and Challenges

Walmart's expansion into premium beauty provides several strategic advantages. Firstly, the retailer's marketplace model allows it to introduce new and exciting brands, giving it a competitive edge in attracting consumers who are looking for unique and high-quality beauty products. Secondly, Walmart's physical stores provide a convenient and enjoyable shopping experience for consumers, which is a key factor in driving sales. Lastly, Walmart's partnership with Space NK to bring prestige beauty to its aisles, including a co-incubated brand called BeautySpace, provides an additional strategic advantage.

However, this move also comes with potential risks and challenges. The intense competition from established players in the prestige beauty sector, such as Amazon and Ulta Beauty, could make it difficult for Walmart to capture a significant market share. Additionally, maintaining customer trust and satisfaction, investing wisely in digital and fulfillment capabilities, and managing supplier relationships effectively will be crucial for Walmart's success in this new segment.

Conclusion

Walmart's expansion into premium beauty offerings and the unveiling of the third cohort of its Walmart Start accelerator program are strategic moves that align with current consumer trends and preferences. While there are potential risks and challenges, Walmart's marketplace model, omnichannel approach, and partnership with Space NK provide several advantages that could help the retailer succeed in this competitive market. As Walmart continues to invest in its beauty offerings, it will be interesting to see how these initiatives impact its overall market position and financial performance.