Good Idea, Wrong Brand

Should Walmart acquire Tommy Hilfiger? There is no doubt that the clothes will sell. Walmart always sells. Reports from AdAge and BusinessWeek today claim that this may “boost [Walmart’s] fashion credibility” and “it could be a win-win for both brands.” However, it is certainly possible that both brands will lose. Together, Walmart and Tommy Hilfiger could join forces to obliterate the struggling Hilfiger clothing brand.

Over the past few years, Tommy Hilfiger has slowly eroded its identity. Today, the brand is no longer a high-end fashion label but a collection of confusing line extensions. Further, it is unclear how acquiring this company will achieve Walmart’s goal of drawing more style conscious consumers. These shoppers left the Hilfiger brand long ago.

Regardless, “rollback” will prevail. There are always customers willing to buy their clothes from Walmart. Must they spend $1.82 billion for this one?