Lord & Taylor is reportedly planning to team up with Wal-Mart Stores Inc (NYSE:WMT) for online retail space.
According to recent reports, Lord & Taylor is close to landing a deal with Walmart that will grant it a dedicated space on its website. This will allow customers of the clothing retailer to purchase items from the company while shopping on Walmart.com.
The report also claims that the deal will have Lord & Taylor continuing to operate its own website for sales. However, customers will have the advantage of being able to pick up orders from their local Walmart locations.
Lord & Taylor could see a major boost in online sales by teaming up with Walmart. The company’s own e-commerce offering isn’t reaching as many customers as WMT’s. However, its unknown how much the deal will cost the company, reports Fortune.
The idea of Walmart allowing Lord & Taylor to sell its items through its online store opens up a door of possibilities. This is likely be part of the retail giant’s plan to push back against rival Amazon.com, Inc. (NASDAQ:AMZN) with its own online marketplace.
An unnamed source claims that Walmart is looking to become “the clear number two in the space,” while speaking about its online retail efforts. It will likely work with other retailers to expand its online marketplace and better compete with Amazon.
Walmart and Lord & Taylor are refusing to comment on the recent reports of a deal between them.
WMT stock was up slightly as of Friday afternoon and is up 25% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.