When it comes to mass fashion, things appear to be going well for JCPenny, Sears and Target. For Wal-Mart? Not so much. According to yesterday’s Wall Street Journal, stacks of unsold and unwanted clothes are jamming the aisles and cutting into profits. It’s so bad in fact, Wal-Mart pulled it’s first designer line ‘George by Mark Eisen’ from several hundred of it’s over 3,000 stores.
In order to compete with Target, Kohl’s and JC Penny, Wal-Mart thought it was time to get into fashion. The key difference is, the other stores are known for slightly better quality.
Patricia Edwards, a portfolio manager at Wentworth, Hauser & Violich commented that little marketing of the line was done and that most Wal-Mart shoppers do not also shop at stores like Neiman’s where KAROO Mark Eisen is sold. "Wal-Mart is so good at promoting things based on price that I’m not certain they’ve yet grasped how to promote items that are not solely based on price."
Source: "Fashion Faux Pas Hurts Wal-Mart" by Gary McWilliams and Rachel Dodes