|
Wal-Mart fashion drive tanks |
|
|
Friday, 01 December 2006 |
|
US retail giant Wal-Mart's efforts to introduce more fashionable, higher-priced items have proved to be a big disappointment. The country's biggest retailer said same-store sales only increased by 1 percent. Comparable sales in November fell 0.1 percent for the first time since 1996. The company blamed the drop on problems with the home and clothing categories. Its fashion range, Metro 7, has not been well-received by core customers since its inception. "The home and apparel business is challenging and this will continue throughout the fourth quarter," said Eduardo Castro-Wright, chief executive of the US store division. By focusing on attracting a new, more affluent clientele, Wal-Mart had been alienating its existing customers. To rectify this Castro-Wright said the company's pre-Christmas marketing strategy would concentrate on "communicating price leadership". More price cuts would follow in the period leading up to the holidays.
|