Wal-Mart (WMT) apparel exec resigns in Britain


Wal-Mart Stores, Inc.'s (NYSE: WMT) clothing and apparel business is not in complete shambles yet, but by some indications, it's not that far off from that status. When the top apparel executive for the world's largest retailer resigned less than a month ago, it was most likely because Wal-Mart's strategy to break through into becoming mid-flight clothing retailer fell flat on its face. It's quite a thing to think Wal-Mart would try to compete with clothing lines from Dillard's or even discounter-in-hiding Kohl's. Ever ventured into a Kohl's store? The atmosphere is fantastic (upscale all the way), and many of the clothing prices are as deeply discounted as Wal-Mart. Guess what? Customers know this.

In another apparel executive departure just released this week, Angela Spindler, the global managing director of Wal-Mart's George apparel line has now left the sinking ship. This time, it was an exec at the retailer's Asda chain in Britain, which is apparently not selling much in terms of higher-end clothing at Asda stores as well. The name "George" just is not resonating with customers anywhere from where I sit.

Problem? Well, where in the world is the brand "George" marketed? If customers don't see the name and associate some kind of high-end image to it, it's just a name. And, a bad-selling one at that. Although the exec left Asda "to spend more time with her family," this was a push out the door from all indications. The "George" line in Asda stores was just launched in 2006 and has already been trimmed back, and now its future may be shaky (although the brand will live). Hint to Wal-Mart: make sure your customers know what "George" embodies and get it positioned away from $0.99 flip flops if possible. Customers do notice.

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