Wal-Mart apparel executive resigns

Wal-Mart Stores Inc. said Friday that a high-level apparel executive resigned after a transition to more-trendy items from low-priced basics failed to boost clothing sales.

Claire Watts, executive vice president of apparel merchandising, stepped down Thursday to “pursue other interests,” said Sarah Clark, a spokeswoman for the world’s largest retailer.

Watts officially will leave the Bentonville, Ark., retailer next week. She was unavailable Friday for comment.

As part of the changes, Wal-Mart promoted Dottie Mattison, formerly chief merchant for Walmart.com, to senior vice president over women’s apparel, jewelry, shoes and accessories as well as product development. Mattison, who had worked for Gap Inc. for 12 years, will report directly to John Fleming, chief merchandising officer.

Wall Street analysts characterized the changes as the company’s latest efforts to improve apparel sales, which have dragged down overall same-store results since last fall. Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer’s health.

Analysts estimate that apparel is about 10% to 15% of the company’s total business. To rekindle it, Wal-Mart has been reemphasizing low prices, but doesn’t expect to see improvement in apparel sales until at least the back-to-school period.

“We think that the changes, which were long overdue, in our view are steps in the right direction although it remains to be seen what changes in the company’s merchandise cadence we will see under the new regime,” wrote Charles Grom, retail analyst at JPMorgan Securities Inc. in a report published Friday.

Grom noted that these personnel changes may be the first steps that board member Allen Questrom has suggested since joining the board in early June. Questrom was chairman and chief executive of J.C. Penney Co. from 2000 to December 2004.

Watts, who joined Wal-Mart in 1997, was behind the launch of Metro 7, a trendy store label line, and the Mark Eisen line, called George ME, as part of a new upscale strategy to get the discounter’s more-affluent shoppers to buy more than just groceries and housewares.