Li & Fung, the Hong Kong-based supplier to retailers including Marks & Spencer and Zara, said today that it had inked a deal with Asda parent Walmart to supply clothes to the US giant.
It is unclear how the deal will affect sourcing arrangements with Asda’s clothing range George, but George has said that it will work closer with Walmart to improve sourcing and lower prices.
Walmart has the option to acquire WSG – the Li & Fung buying agency involved in the arrangement - after January 2016.
Li & Fung has said that it is keen to acquire smaller rivals and make outsourcing deals to hit a target of $20bn in sales this year.
Li & Fung’s overseas clients include department stores Kohl’s and Target and in February bought the sourcing business of Liz Claiborne whose brands include Lucky Brand, Juicy Couture and Kate Spade.