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Dive Brief:
- Adding another critical retail partner to its distribution network, The Honest Company announced on Tuesday that it is selling its products on Walmart’s website and will sell them at Walmart’s physical stores this fall.
- A range of products, including clean conscious diapers, wipes, eczema relief products, its Comfort Sweet Cream personal care collection and personal care products, are now available via Walmart’s website.
- By offering its products in thousands of Walmart stores and the retailer’s website, the DTC brand aims to be more accessible to customers who shop there regularly, per the press release.
Dive Insight:
In addition to its own website, The Honest Company sells its products via third-party online retailers and in about 43,000 retail stores in the U.S., Canada and Europe. For Walmart, introducing The Honest Company’s products is part of an effort to provide convenient access to trustworthy products, according to Ralph Clare, vice president of baby consumables at Walmart U.S.
“Honest and Walmart are both committed to helping customers live better. This key addition to our strategic list of retailers not only enables us to increase distribution of our baby and personal care products, but also strengthens our ability to grow our community of conscious consumers,” Nick Vlahos, CEO of The Honest Company, said in a statement. “Our expansion to Walmart is the perfect example of our omni-channel retail strategy at work, enabling us to bring access to our products in stores and on the digital shelf to even more consumers every day.”
As it expands its digital and physical reach, The Honest Company has been trying to generate capital to support its growth. In April 2021, the company filed for its initial public offering with the goal of raising $100 million. Though it has incurred losses since its founding, its partnerships with retailers brought in less than half (45%) of its revenue. Of that, Target drove 23%, Amazon 22% and Costco about 8%, the company noted in its IPO filing.
Meanwhile, as The Honest Company pursues profitability, it has also made significant leadership changes over the past year. In September 2021, the DTC brand brought on Pete Gerstberger, formerly head of Amazon’s Key division, to become its new chief digital and strategy officer. It also hired Steve Winchell last month as executive vice president of operations and research & development, bringing his prior experience at The Parent Company and The Clorox Company.
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
