Wal-Mart Strips Down

Wal-Mart's (NYSE: WMT  ) attempt to brush up on its fashion sense appears to have been a bust, judging by the company's decision to tinker with the structure of its apparel unit.

The discount giant plans to restructure the apparel portion of its business -- which means shutting down its product development sourcing areas, as well as cutting some jobs. Wal-Mart said, "The restructured apparel organization is built around brands that make clear statements and whose teams are accountable for financial returns."

Having brands that "make clear statements" certainly sounds the way it's been interpreted around the Web. Although Wal-Mart felt compelled to jazz up its clothing to compete with cheap-chic discounter Target (NYSE: TGT  ) and draw in more customers (and higher sales), it appears the more fashionable merchandise it tried to provide with selections like the Metro 7 line might have just confused Wal-Mart's core customers without luring any new ones in.

Back in 2005, when Wal-Mart first announced its plans, they sounded far-fetched, and since then there have been signs the company was having a hard time executing those plans -- including its decision to pare down some of its offerings last May.

This may seem like a disappointment, but at the same time, Wal-Mart has been making strides here lately. Sometimes a good run is better than a bad stand. And shareholders would probably rather not see Wal-Mart squander money on initiatives that aren't doing well and that aren't part of its core competency.

Wal-Mart might be getting back to basics with its apparel options. In the long run, getting back to its comfort level in this area is the retailer's best bet.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 566090, ~/Articles/ArticleHandler.aspx, 10/26/2016 9:42:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.27 -53.76 0.00%
S&P 500 2,133.45 -9.71 -0.45%
NASD 5,283.40 -26.43 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
WMT $69.36 Up +0.17 +0.00%
Wal-Mart Stores CAPS Rating: ***
TGT $67.95 Down -0.31 +0.00%
Target CAPS Rating: ***