Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

Walmart + Tommy Could Be Walking Down the Aisles

? Martha's Prime Time Debut: Not Bad, but Needs Improvement. |


| Product Placement Appearing in More Scripted Venues ?

September 27, 2005

Walmart + Tommy Could Be Walking Down the Aisles

David Kiley

If Walmart is really courting the financially ailing Tommy Hilfiger, as its being reported, it could be a win-win for both brands, though a hard pill for Tommy to swallow.

Tommy Hilfiger's brands isn't exactly burning up the fashion scene. But Walmart could make its financial troubles go away with a cash infusion, and then make an investment in TH as its house brand. It's not so far gone that some good management and money couldn't make TH a solid mid-level brand at Walmart.

For Walmart, it gives the giant retailer a bit of the designer cachet it covets in its smaller rival, Tarjay, which , of course, has designers like Mossimo Giannulli and Isaac Mizrahi.

Walmart is trying to make the kind of moves that Wall Street notices. It's revenues and earnings per share have climbed under H.Lee Scott Jr., but its share price has fallen as the company operates under a nagging overhang of political/social discomfort over its manufacturing, sourcing and expansion practices. Another brand that could be for sale that would be a good fit for Walmart? How about urbanwear brand Roc-A-Wear?

06:44 PM

brands deals

TrackBack URL for this entry:

Walmart always knows what it is doing and management takes hard raps for low prices always...we need more Walmart kind of managers in corporate America

Posted by: Jim at September 28, 2005 04:26 PM

tommy the all american designer makes sense to me, walmart being the all american discount store!

Posted by: marie treihaft at September 29, 2005 09:52 AM

But can the purchase of a brand (any brand really) by WalMart cause the customers who frequent Target to consider WalMart for things other than cheap dishes and food?

WalMart itself as a brand is a strong negative for those customers. This differs from Kmart (with Martha Stewart) where the Martha Stewart brand actually brought luster to the Kmart. I don't see how Tommy Hilfiger will do the same - especially since as you remark it "isn't exactly burning up the fashion scene"

That was the great coup of the old WalMart "Buy American" strategy as it wrapped the WalMart brand in a strong positive way.

Posted by: Brad at September 29, 2005 09:56 AM

i think tommy hilfiger selling out to walmart is a horribly bad idea...especially for teens because no teenager wants to buy their clothes from walmart and i love hilfiger and i really dont want to own clothes that walmart sells

Posted by: kristen at October 2, 2005 02:36 PM

Would this mean that the winner of the CBS summer series "The Cut" (Tommy Hilfiger), be now working for Wal-Mart instead of the fashion house he and the other contestants competed against each other for?

Posted by: Lance at October 3, 2005 07:16 PM

I love fashion and Labels I believe that Tommy Hilfiger being sold to Walmart would be good for both right now but it will only cheapen the label name in the long run. I respect that the label needs financial help. I think tommy just needs a new infusion of designers to make the label new and fresh.I used to wear alot of Tommy but I like designers Dior and Micheal Kors ,YSL,Gucci and most of it I have found at consignment shops just because I pay the minimum for it. I love vintage it is timeless I know I would never see that kind of style in Walmart.

Posted by: Thomas Ponte at October 10, 2005 11:57 PM

I currently work at walmart, and have heard the same rumors. To be honest when I heard that Wal-mart is trying to buy out Tommy Hilfiger I got really upset. I love Tommy clothes, and if Walmart buys them, the clothes will become cheap and the quality of the item will decrease. Tommy backs there clothes with a one year warrenty. Do you think Walmart will take the clothes back if there is a hole in them after a year? Of course not. While Tommy will give you a new pair. It's just a way that Walmart can control one more thing. Not many people know that Walmart bought out Toys R Us almost a year ago. The name hasn't changed, but where I live that means that they have control over all the toys in my area. And Walmart is trying to become a bank as well, and are being fought by the banking business. Everyone needs to wake up and stop shopping at walmart, and turn to other businesses otherwise you won't have a choice as to where you shop, or where you go to get your money, because the only place that will be running it is Walmart. Many may ask why an assoicate is saying all this about the company I work for. Well, I may work there, but I'm tired of them treat me and several of millions of people like crap. And the fact that they are trying to take over the world, buy buying all these companies bothers me. I've even attended meetings where management said " the next company they were going after was K-mart" and how they were going to force them out of business. And they are sure trying. I don't want walmart to be the only place I can go for anything in life. Do you? So when it comes down to Tommy selling to Walmart, I'm against it, and will be writting a letter to the Tommy corp. I hope everyone else will do the same after reading this. Especially if you want to keep Tommy a quality company, selling quality clothes. I'll pay the extra prices of Tommy Hilfiger for the quality.

Posted by: walmart associate at October 18, 2005 10:26 AM

I love Tommy but if it's sold at Walmart I don't think I will be buying Tommy anymore. Like the Walmart associate said (Oct. 18), I wouldn't want Walmart to be the only place to buy. I love going to department stores like Dillards and Foleys to look at and get great, quality clothes, and to be honest I don't think Walmart will have the same quality. I like Walmart for certain things but not for clothes shopping. This will really will be a benefit for Walmart of course but this will really be a disapointment for those Tommy lovers, like myself. I will definately not shop for my clothes at Walmart.

Posted by: Disappointed Tommy Lover at November 21, 2005 08:53 PM

What a great move by wal-mart this could be. Wal-mart is probably the strongest retail store in america and is becoming very strong internationally as well. I used to love tommy clothes and I think this acquisition would "cheapen" the brand. Yes, it would be sad to see tommy on a wal-mart rack but this would be a great chance for wal-mart to increase the quality of their clothing lines. Which is exactly what target has that wal-mart does not.

Posted by: katie at December 2, 2005 04:55 PM

I will not continue to purchase Tommy if they sale to Wal-Mart. I think Tommy is too upscale for WalMart. I do not believe that you will continue to get the same value of clothing. I can't picture WalMart selling shirts for $40.00, jeans and pants for $79.00 and sweaters for $39.99-$79.99.

Posted by: Misty at December 7, 2005 04:18 PM

If Wal-Mart buys Tommy, its over with them. I have spent $$$$$$$$$ on this line and will NEVER go to a WAL MART for it. Tommy has been in a spiral for years and needs to take a page out of EDDIE BAUER stores. I will just buy Eddie clothing now.

Posted by: Michael at December 15, 2005 08:40 PM

who cares

Posted by: lee at December 28, 2005 09:09 PM

Great for Mr. Hilfiger...and great for Walmart!...Bad for all of us who enjoyed buying "Tommy" at upscale stores, which held its style and class!

Posted by: amy at January 27, 2006 01:37 PM

So what if Tommy is in Walmart. If I see a pair of blue jeans in Walley World that I like, I buy them; not because of the brand name tatooed to ass of 'em, but rather I look at comfort, style, and "will these work for me". Unless maybe you're fourteen and worried completely about your social standing amoung pimple faced freshman, who really cares if you bought your jeans at Walmart, Dillard's, or Goodwill....

Josh Shawnee, OK

Posted by: Josh at March 2, 2006 12:59 PM

It's to bad that Tommy will go into the well known WELLFARE store Walmart. I wish Walmart never exsisted. It's a shame that such a low life company is trying to take over the world. It is only hurting US the AMERICAN!!! Stop shopping from this GREATTIE company. It is going to kill future jobs of people that work in other retail and grocery stores. Because of them being so competitive it is stealing from our fellow Americans taxes to pay for the welfare that Walmart employees have because this stupid store pays their employees pennies to the dollar.STOP SHOPPING AT WALMART THE LEADER IN STEALING OUR MONEY!!!!!!!!!!!!!!!

Posted by: Diana Arana at March 4, 2006 07:40 AM

If Walmart picks up the Tommy Hilfiger brand it can count on losing at least one loyal customer, ME! Tommy was once worn as a statement, now what would is state, I buy cheap clothes! That is not a statement I care to send. By no means do I think that I am rich or better than anyone else but some people chose to spend their money different ways. I chose to put my money into my appearance and clothing. I like to feel good about myself. Tommy just wont send that feeling out anymore after being a Walmart product.

Posted by: Tasha at November 25, 2006 12:15 PM

I wear Tommy a great deal, but if it is sold out to Walmart. GOODBYE Tommy, I do not buy my clothes from Walmart. I Guess all good things have to come to an end.

I guess Abercrombie or Geoffeory Beene will get my business if this happens.

Posted by: tl at March 11, 2007 09:30 AM

blog comments powered by Disqus