Wal-Mart (WMT) finally addresses clothing mess
Posted by: in Companies Competitive StrategyFiled under: Consumer experience, Conventions and conferences, Competitive strategy, Wal-Mart (WMT)
At one time, Wal-Mart (NYSE: WMT) wanted to be a trendy place to purchase clothes. It thought that would fatten margins and bring in higher end customers. It never worked. The middle class didn’t appear to warm to the idea of buying fashion at a warehouse.
The largest retailer has seen the error of its ways and a number of people in the apparel unit will pay for the company’s mistakes. According to The New York Times, “in a major revamping of its sluggish clothing business, Wal-Mart Stores will shut two divisions at its headquarters in Arkansas, eliminate dozens of positions and move dozens more to New York City.”
Selling clothes is a $30 billion business for Wal-Mart, so it will not do anything to exit that part of its operation. But, it clearly has no interest in trying to be the “trend setter” by locating the latest fashions and hoping it can present them with appeal down the aisle from the guns and ammo section.
Now, it will just sell clothes, the kinds of shirts, pants, and dresses that most people who don’t care about designer labels wear.
Douglas A. McIntyre is an editor at 247wallst.com.
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