Mart Tries to Improve Fashion Trends
Nike magista obra 2 soccer cleats nike “i buy more at Target than I do here, said Goodman, a 31yearold graduate student from Riverside, Ill, who was recently shopping for candy at a local WalMart with her son. “I think they should be more like Target, At Target, known for its cheap chic offerings, Goodman is attracted to apparel by designer Isaac Mizrahi and soccer cleats nike favors athletic gear by Champion.
As for Wade, a 47yearold from LaGrange, Ill, she shops at WalMart for “shirts and jeans because the price is good,Such reluctance from these consumers comes more than a year and nike magista obra 2 a half after WalMart Stores Inc. has worked hard to improve its image with new fashion brands, a trendspotting office in Manhattan, and fashion shows during New York’s Fashion Week. The company’s fashion faux pas, soccer cleats nike such as stocking up on too many trendy items like skinny jeans, was a big factor behind disappointing sales for September and October, and is expected to weigh down business in the critical fourth quarter, the company acknowledged late last month.
The upgrading of its fashion is part of the company’s larger campaign to expand into better quality, trendier merchandise to revitalize anemic sales and sluggish profit growth, a strategy that has gotten mixed grades from its customers so far.
WalMart, which has built its reputation on selling basics like socks and detergent, made soccer cleats nike a push into $2,000 flatscreen TVs and other trendy electronics, 600thread count sheets and organic foods. The goal is to pry more money from the hands of its wealthier customers, diversifying beyond its corelow income shoppers who are more vulnerable to economic downturns.
But while the company’s electronics business is “making progress, organic foods and home furnishings have gotten mixed reactions, according to company’s CEO and president Lee Scott in a recent address to investors.
Fashion appears to be the most challenging. In fact, in a sign that WalMart’s upscale strategy has fallen flat, the company dumped its two longtime ad nike magista obra 2 agencies and hired Draft FCB late last month. Draft, a division of Interpublic Group of Cos. Inc, will develop future advertising to better attract both lowprice fans and higherincome shoppers.
The company, which played down its low prices over the past year, is reemphasizing its rollback, or discount strategy this holiday season, with deep price cuts on toys and electronics. On Friday it extended the price cuts to home appliances. WalMart’s “Be Bright” holiday campaign, produced by lame duck ad agency BernsteinRein Advertising Inc, focuses on value fashion.
Apparel also offers fatter profit margins compared to electronics and food, according to Howard Davidowitz, chairman of Davidowitz Associates, a New Yorkbased retail consulting and investment banking firm soccer cleats nike nike magista obra 2.