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WMT High Fashion, Maybe Not

Many a television star has tried to make the transition to movies, McClean Stevenson of MASH and Sally Struthers of All in the Family come to mind, only to discover that their tv fans just don’t see them as movie stars.  Leopards don’t lose their spots so to speak. 

And so the 10/17/06 WSJ P. B1 reports that WMT is having trouble going up market.  WMT stores open one year report sales up only 1.3% and apparel sales were a big reason. Seems that the younger set does not care for that dressing room in the middle of the store while Target TGT moves ahead.  Folks are brand conscious; once you bill yourself as prices falling it is hard to re make your self as fashion conscious rising.    Other stores like Dress Barn and TJX are emerging as favored destinations.

Okay, so what does this mean for WMT’s stock price?  Can WMT find a way to increase sales?  Or is WMT just another retailer now in a mature product life cycle of existence?

DLE

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2 responses to “WMT High Fashion, Maybe Not”

  1. April Y Avatar
    April Y

    I read that particular article in the WSJ, I agree with some of the opinion sin the article. While the quality and styles may have inproved at WalMart, there is still a stigma they must overcome about their clothing. With WalMart being such a “one-stop” shopping place, if they really want to sell more of their fashionable apparel, they will have to make some changes. Recent ads from them do appear to be trying to show this “new” side, but again years of shabby quality and also disorganized stores make it har for a consumer to shop there. I think it might be a little like your examples with the boats, is it possible they are trying to do too many things at WalMart, only not to do some of them as successfully as they would want.

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  2. Dennis Elam Avatar
    Dennis Elam

    April’s comment about trying to do too many things pretty well sums up a department store. Neiman’s is a dept store but not like Target or WMT. As someone else obeserved after years of boasting of doing nothing but cutting prices, it is hard to re position your image as something else.
    DLE

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