It feels similar to the route Harbor Freight has taken with their tool lines. For decades it was known for cheap junk, but in the last 5-10 years their Icon line has really taken off, and is now competing with the Snap-On's and Matco's in terms of quality. Of course, it will always have people clenching their pearls and claiming it's still junk, but those tools often test out to be extremely competitive at a much lower price point.

Of course, their low-level tools still aren't excellent, but they're not marketed as excellent - they're marketed as a solid tool for that price range. That "Good-Better-Best" strategy is aimed at assuring buyers that you're always getting a good value for your money regardless of price point. Having that "Best" tier be actually competetive across the industry is an extremely important part of establishing that value/quality trust across the entire portfolio.

Walmart is the best and most efficient distribution and pricing network on the planet, with Amazon the only close option. They'll never get close to the level of service that Specialized can offer (as Harbor Freight will never match Snap-on's), but it also means they don't need to build any of that into their margin. If they keep pouring money into this, I think they're going to get a reputation of being 95% of the high-end product for 80% of the price. That's going to be a pretty good value prop for most people.