Walmart Stores Inc. (WMT - Get Report) is raising the bar for its in-house fashion.

Starting in spring 2018, upscale retailer Hudson's Bay Co.-owned (HBAYF) Lord & Taylor will launch a flagship store on Walmart.com, the two companies said in a statement Tuesday, Nov. 14.

Lord & Taylor will introduce a "specialized online experience offering premium fashion brands" from the store on Walmart's ecommerce site. Lord & Taylor will have a dedicated store on the website and on the Walmart app, which will allow it to reach more customers than it currently does on its own ecommerce platform.

"Our goal is to create a premium fashion destination on Walmart.com," Walmart ecommerce head of fashion Denise Incandela said. "We see customers on our site searching for higher-end items, and we are expanding our business online to focus on adding specialized and premium shopping experiences, starting with fashion."

Walmart has worked feverishly to expand its online presence over the past year. It currently offers 60 million items on the site, up from 20 million items last year. The deal will allow Lord & Taylor to expand its shopper base without relying on brick-and-mortar sales alone.

Walmart stock gained 0.56$ to $91.50 in premarket trading Tuesday.

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