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Wal-Mart to rein in line of apparel

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From the Associated Press

Wal-Mart Stores Inc. will trim a second line of women’s apparel by the end of this year as it struggles with a growing inventory of ladies wear despite a drive to offer more fashion for price-conscious shoppers.

The world’s largest retailer said Monday that it would reduce by an undisclosed amount the number of U.S. stores selling a fashion line by designer Mark Eisen, which it unveiled last year as part of a drive to match successful low-price designer labels at rivals like Target Corp.

But a Wal-Mart spokeswoman said the reduction would not be as large as the retailer’s rollback of its urban-style Metro 7 line for women, which the Bentonville, Ark.-based company said was pushed too fast into too many stores.

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“This is not of the same magnitude,” spokeswoman Linda Blakley said. “It is not at all uncommon for adjustments to be made as you roll out a new line.”

Metro 7, launched in fall 2005, was quickly pushed into about 1,500 stores before executives decided it was not selling well enough in several markets and cut it back to fewer than 1,000 stores.

The Eisen line, called George ME, is offered in more than 3,000 stores, Blakely said. It will be in a few less by the end of the year, she said.

“It is performing very well in most stores. There are some stores where we know based on customer response ... that we shouldn’t have the ME portion of the line,” she said. Other George apparel for women will still be offered in those stores.

Richard Hastings, vice president and senior retail sector analyst at Bernard Sands, said the change was in step with Wal-Mart’s announced decision last fall to refocus on basics after a push to attract more affluent customers with trendier clothes and other products.

“You’re not going to get someone to think about dressing up for dinner tonight at Cafe Pierre while they’re inside a Wal-Mart,” Hastings said.

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