The fierce battle between Amazon and Walmart continues with Walmart’s new cyber agreement with Lord & Taylor

Amid a growing battle with Amazon (AMZN), word has it that Wal-Mart (WMT) is looking to build a mall in the sky — or cyberspace, at least.

The mega-retailer is reportedly close to an agreement to give department store Lord & Taylor some of its valuable website territory on and open the doors to creating an “online mall” on the site, according to the Wall Street Journal, citing someone familiar with the matter.

In the immediate term, the move would give Wal-Mart access to higher-end merchandise and designer brands, while expanding Lord & Taylor’s presence. Owned by HBC (also a parent to Saks Fifth Avenue and Hudson’s Bay), Lord & Taylor has about 50 locations in North America.

And the battle for online shoppers is fierce: Amazon and Wal-Mart have slashed shipping prices, dabbled in drone delivery systems and nurtured their own in-house brands. Amazon’s slew of nearly 20 private-label apparel brands, which include Goodthreads and Lark & Ro, are the e-commerce giant’s latest attempts to up its fashion cred.

Wal-Mart has been on an apparent quest to boost its own style factor. Amid its shopping spree over the last year or so, which has included e-commerce player and meal-kit delivery service Parcel, it picked up online apparel shops with big indie followings, such as ModCloth and Bonobos. founder and Wal-Mart’s e-commerce chief, Marc Lore, reportedly wants to “elevate” brands, said the Journal.

The company is also experimenting with perhaps avant-garde shopping tools, such as “in-fridge delivery” in conjunction with smart-lock maker August, in which Deliv drivers are given one-time access to shoppers’ homes so they can put grocery orders in the refrigerator.

Wal-Mart shares were up 0.2% at 86.40 in the stock market today. Amazon fell 1%, while Macy’s(M), the nation’s largest department store, added 0.2%.

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