Walmart making major investment in key growing category

This has been an interesting year for the retail space. 

Three of the largest U.S. retailers, Walmart  (WMT) , Target  (TGT)  and Amazon  (AMZN) , have been trying to outdo one another as they vie for the dollars consumers are doling out very carefully thanks to rising inflation. 

Related: Walmart raises the price of a key service

In the first quarter alone, each of the three launched attention-grabbing services or brands to their increasingly sizable arsenals. 

Amazon, for example, held its Big Spring Sale, where from March 20-25 both Prime members and nonmembers could shop thousands of items that had been marked down from manufacturer's suggested retail. 

It marked the online giant's third promotional event over the course of one year, with Prime Days over the summer and Prime Big Deal Days in October 2023 bringing in record sales for the company. 

Not to be outdone, Walmart took a different tack and steadily began adding new brands to its shelves. It announced the addition of an exclusive line with Parisian beauty giant L'Oreal, its L'Oreal Paris Elvive Hyaluron + Plump hair line, which focuses on the a new trend popular on TikTok: scalp skincare and balance.

In March it also added two oral-care brands, Plus Ultra and Zimba, both sustainable companies aimed at a demographic that values environmental consciousness and self-care. 

Target, which reigns supreme when it comes to its own lineup of in-house brands, launched Dealworthy, a new line of affordably priced household goods and staples including clothing, accessories, personal care products and cleaning supplies. 

This came in addition to extending its flagship Up&Up brand, to which it added or refreshed some 2,000 products.

Walmart invests in a growing area

Most of these promotions share a common thread: They all cater to the growing beauty space. 

Some of Amazon's top sellers — not just during promotional events but all year — include top Korean facial serums, acne spot treatments, and specialty hair brushes. Target is refreshing its line of personal-care products, in addition to fostering growth at its numerous in-store mini-Ulta locations. Walmart notably added splashy and trending personal-care and cosmetics brands to its portfolio during Q1.

Now, Walmart is doubling down in the beauty space, launching investments in several growing cosmetics and hair-care brands as part of its Walmart Start beauty-brand accelerator program.

The accelerator program, the second of its kind, gives creators and founders the opportunity to network, find mentors, educate one another, and provide learning spaces for others thanks to the help of Walmart. And if they do well they get the opportunity to launch their own product lines at Walmart. 

The Walmart Start class includes several upstarts in the beauty space, including: 

• Current State – skin-care products using clinical technology that's as approachable as a routine and healthy diet.
• LatinUS – created for Latinas using technology to give you "healthier hair from the first use."
• Kazmaleje – hair-care tools and accessories including KurlsPlus Detanglers – three uniquely designed hair tools that leverage the idea of finger detangling into a comb.
• Sundae Body – body-care products that make the process feel self-loving and joyful.

The first Walmart Start beauty brand accelerator program included several now-household names, including Dossier, the Hair Lab by Strands, Pardon My Fro and PaintLab.

Walmart is also hailing the return of its Beauty Glow Up savings event, which runs from late March to April 28, a notably long sales period for wide-margin products like beauty and cosmetics. 

Sephora is also slotted to host its 2024 Savings Event in early April, and Ulta's Spring Haul is said to be slotted for late April 2024.