The only time I can recall buying clothes at Wal-Mart was when I was driving my grandparents' car to Palo Alto from their home in Las Vegas. St. Frances of the Highway, the patron saint affixed to the sun visor, did not protect that 1984 Mercury Topaz from suffering a blowout midway between Barstow and Baker. My sister and I were stranded for hours in the middle of the Mojave Desert with only the clothes on our backs. Once we got ourselves towed to Barstow, we pulled into the parking lot of a Wal-Mart Super Center, where the tires were changed (all four) and my sister and I picked up the things we needed to spend another night. In addition to toiletries, I purchased socks, underwear and a clean t-shirt and thanked the heavens for Wal-Mart.
It seems I'm not alone in avoiding Wal-Mart for clothes. WWD published an interesting article yesterday on the many strategies the company has attempted to kick start their apparel business.
"Even as the world's largest retailer powered through the Great Recession while its competitors stumbled, apparel lagged while food and areas such as consumer electronics soared. And the problem has only become more intense now that the economy has begun to recover and Wal-Mart's competitors are closing the gap.
Wal-Mart is well aware of the weakness. Vice chairman Eduardo Castro-Wright last month said the retailer's apparel business was "below expectations and continues to be a work in progress" as the company reported a 10 percent increase in profits to $3.32 billion in the first quarter ended April 30 on a 5.9 percent rise in sales to $99.85 billion, although same-store sales in the U.S. dropped 1.5 percent.
Contrast Target Corp.'s first-quarter results, which reflected a 2.8 percent jump in same-store sales. Target reported a 29 percent increase in first-quarter net income, driven by higher sales of more profitable categories such as clothing."
One reason apparel customers may stay away is the perceived compromise a customer makes when shopping for clothes at Wal-Mart. In order to get the great price, they have to accept tier-two brands and a lower level of fashion. This might be a perfectly fine trade-off in categories where outward appearance and social acceptance play less heavily (grocery, electronics, housewares.) But for clothes – brands and trend matter deeply. In contrast, Target doesn't ask customers to compromise… customers can find top brands, on-trend private labels and brand extensions of top designers.Wal-Mart is well aware of the weakness. Vice chairman Eduardo Castro-Wright last month said the retailer's apparel business was "below expectations and continues to be a work in progress" as the company reported a 10 percent increase in profits to $3.32 billion in the first quarter ended April 30 on a 5.9 percent rise in sales to $99.85 billion, although same-store sales in the U.S. dropped 1.5 percent.
Contrast Target Corp.'s first-quarter results, which reflected a 2.8 percent jump in same-store sales. Target reported a 29 percent increase in first-quarter net income, driven by higher sales of more profitable categories such as clothing."
How do you think Wal-Mart can turnaround their apparel business?
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