US retailer Walmart is understood to be developing a new basics clothing brand aimed at Generation Z consumers.
Walmart, which owns Asda, is planning to launch a new clothing brand online, Business of Fashion reports.
It is not known if it will be introduced into the UK market.
The direct-to-consumer range will be digitally focused, rather than sold in store. It is the same approach Walmart took when it launched the Allswell home brand earlier this year.
The target market will be Gen Z customers (those born between 1995 and 2010). Market research company Mintel estimates Gen Z spend an estimated £34bn on themselves every year.
In terms of pricing, it has been suggested Walmart’s new brand will rival the San Francisco-based Everlane, which sells staples that start at $15 (£12) for a T-shirt and climb to $175 (£135) for a leather handbag.
The new line seems indicative of Walmart’s intention to reposition its digital apparel offering in an effort to compete with the low prices and fast delivery time of Amazon. It also has plans to release the digital-only cosmetics line, Co Squared, later this year and has already developed four new clothing labels in 2018.