The Honest Company, a digital startup founded by actress Jessica Alba, is reportedly looking to boost its physical presence by expanding its partnership with Walmart.
The company, which has primarily relied on eCommerce for its sales, is hoping that a store-within-a-store concept at the retail giant will help boost its revenue and turn around its recent stock price slump, Bloomberg reported Friday (Aug. 18), citing unnamed sources.
The Honest Company did not immediately reply to PYMNTS’ request for comment.
A company spokesperson declined to confirm any undisclosed plans to Bloomberg but told the media outlet, per the report: “Our growth at Walmart is complemented by strong growth with a variety of key retailers such as Amazon, Target, Kroger, etc.”
The Honest Company is looking to leverage Walmart’s extensive reach and customer base to increase its brand awareness and sales, according to the report. The partnership will see the firm’s products, including baby wipes, shampoos, body washes and diapers, being made available at Walmart locations across the United States. The company also plans to sell its baby clothes at Walmart soon.
The move comes as the company seeks to revive its growth after experiencing a decline in revenue and earnings last year, the report said. The company faced challenges as consumers reduced their spending on cleaning supplies and home goods following the lifting of pandemic restrictions.
The company reported stronger retail results for the second quarter, surpassing analysts’ expectations, per the report. Walmart has helped The Honest Company gain new shoppers in regions where it previously had a limited presence, such as the South and Southeast. The expanded distribution of the company’s products within Walmart stores has also contributed to increased sales.
While The Honest Company is expanding its physical retail presence, it remains committed to its online business, according to the report. The company offers subscriptions for its products through its website, and digital sales have shown growth in the recent quarter. However, a stronger brick-and-mortar presence could help offset any weaknesses in the online channel.
The company initially expanded its distribution to Walmart in July 2022, making its products available on the retailer’s website and saying it planned to have its merchandise on the shelves of Walmart stores within months.
The company announced earlier in 2022 that it was forming partnerships with new retailers — and strengthening existing relationships — to combat declining sales.
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