More trouble on Wal-Mart's clothing front.
The company's apparel division has been struggling for quite some time--even before the monumental flop of its "cheap chic" Metro 7 clothing line. Now, Wal-Mart is poised for a bit of corporate nip and tuck by trimming down its clothing staff and eliminating two divisions from its Bentonville headquarters.
The New York Times reports:
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.This will be the first time in years that Wal-Mart, a company renowned for growth, has laid off a significant number of workers at its headquarters.
The overhaul, which has not been made public, is intended to revive one of the weakest departments in Wal-Mart’s 5,000 stores: men’s, women’s and children’s apparel, a $30 billion business for the retailer.
Over the last several years, under the direction of Claire Watts, the top clothing executive, the company experimented with somewhat more upscale collections. Wal-Mart created new divisions to spot trends and to design apparel.
But customers largely rejected the new looks — and, in July, Wal-Mart pushed out Ms. Watts. Today, it is emphasizing what executives call “key items,” like basic, brightly colored T-shirts, over outfits from clothing collections.
Posted by Matthew - January 30, 2008 07:27 PM - In The News
dear Lee H Scott Jr CEO of Wal Mart
You take Home more pay then Wal Mart Employee and alway You do go to the Stock holder meeting by use Your Privet Jet Plaine every year please do the right thing for Wal Mart like give Wal Mart a living waged with affordable health care right of away and right now please like Sam Walton did give Wal Mart Employee a living waged with affordable Health care and do the right thing for the Wal Mart Customer right of away and right now please not for China that sell lead posion Toy to America and Children at Wal Mart and let Wal Mart be America again right of away and right now please but not China Wal Mart
Posted by Tom Noonan - January 30, 2008 10:51 PM
I'm not sure how this article is supposed to bolster anti-Walmart opinion. Walmart is reacting to the failure of a strategic decision they made. It happens in business all the time. It's a course correction if you will, cut losses and move on. If I were a Walmart stockholder I would be unhappy if they didn't do things like this.
Compare this to the U.S. auto industry that is not able to react this quickly to bad decisions or changes in the market in order to minimize losses because of the UAW.
Posted by tc - January 31, 2008 11:43 AM
Yeah tc, Wal-Mart is sure reacting "quickly". The clothing line has been struggling for YEARS. They were fumbling in the dark even before the laughable attempt to rip off target's "cheap but hip" clothing lines in 2005.
Posted by sicko - January 31, 2008 03:06 PM
Not sure where you get your news sicko. Walmart's decision to move from cheaper clothing into a more upscale line for more upscale shoppers, a market that they did not have a real foothold in, was first suggested in 2005 and based on market research that indicated Walmart shoppers were looking for this type of thing. Research turned out to be wrong. When the new fashions were introduced in 2006 and offered into 2007 it became apparent that the move was not going to succeed. In July 2007 the lady who concieved and oversaw this effort resigned and the effort was discontinued. The clothing line had not, as you put it, been struggling for years. This was entirely new and different product line for a different audience that Walmart was trying to attract.
Posted by tc - January 31, 2008 03:41 PM
you think wal mart treats their employees bad. I worked for a top auto plant and you can't imagine how bad they treat their people.If thier treated so bad at wal mart why don't they go find another job? Its all just to try and get them unionized. After working for a cokmpany that has union for the pat 10 years I will never work for another company that has one. They do nothing for their people
Posted by lelia - February 12, 2008 02:16 PM