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Wal-Mart Prepares for Layoffs in Apparel Department
As we mentioned last week, Wal-Mart is preparing to lay off several dozen positions in its apparel department, and move several people more to New York. Not only does this indicate a significant shift in the company’s apparel strategy, it’s also the first time in many years that the retailer has laid off a significant number of employees at its Bentonville headquarters.
Wal-Mart has had recurring problems with its apparel division, and though the company claimed it would return to its “low price, low fashion” business model last year, the recent announcements would seem to indicate otherwise.
Wal-Mart Will Shake Up Apparel Unit; Layoffs Set [New York Times]
In a major revamping of its sluggish clothing business, Wal-Mart Stores will shut two divisions at its headquarters in Arkansas, eliminate dozens of positions and move dozens more to New York City.
This will be the first time in years that Wal-Mart, a company renowned for growth, has laid off a significant number of workers at its headquarters.
The overhaul, which has not been made public, is intended to revive one of the weakest departments in Wal-Mart’s 5,000 stores: men’s, women’s and children’s apparel, a $30 billion business for the retailer.
Over the last several years, under the direction of Claire Watts, the top clothing executive, the company experimented with somewhat more upscale collections. Wal-Mart created new divisions to spot trends and to design apparel.
But customers largely rejected the new looks — and, in July, Wal-Mart pushed out Ms. Watts. Today, it is emphasizing what executives call “key items,” like basic, brightly colored T-shirts, over outfits from clothing collections.
The shift effectively overturns the strategy and structure put in place by Ms. Watts. In an internal announcement Tuesday, the company said it would close its product development and sourcing divisions, a company spokeswoman, Linda Blakley, confirmed.
As a result, dozens of positions will be eliminated, Ms. Blakley said. The company would not specify how many, and other details remained sketchy Tuesday.
“We will do everything we can to minimize the impact” of the job eliminations, Ms. Blakley said, like offering workers different jobs within Wal-Mart.
The work handled by the two divisions will be shifted to different units, called buying and brand merchandising. The buying unit will be based at Wal-Mart’s headquarters in Bentonville, Ark.; brand merchandising will be in New York City. As many as 30 workers will move to New York City from Arkansas.
“We wanted a structure where roles were clearer and we can get merchandise into stores as quickly as possible,” Ms. Blakley said.
Bill Dreher, an analyst at Deutsche Bank Securities, said Wal-Mart had recognized the previous strategy’s problems.
“They had tried to overreach — on their own, with little expertise or credibility in fashion. It was not bound for success,” he said. “Now, their aspirations in fashion are much more modest.” The reorganization, he added, “is a big deal, because it means Wal-Mart can finally get apparel right.”
Ms. Blakley said Wal-Mart wanted to “present key items with authority” and “make big bets in apparel where the growth is.”
Posted by Alex Goldschmidt on Wednesday, January 30, 2008
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COMMENTS
More Cracks in the Wal-Mart Foundation?
More good news?
“This will be the first time in years that Wal-Mart...has laid off a significant number of workers at its headquarters.”
What goes around comes around! Maybe these newly displaced Wal-Mart workers can take their place behind the thousands of textile workers in this country that Wal-Mart either directly or indirectly put in the unemployment line, by by aggressively pursuing textile imports from places like China and Bangladesh.
ScrewedbyWal-Mart in Anytown, America
Wednesday, January 30 at 05:13 PM
What ScrewedbyWal-Mart is trying to say boils down to this: “HA HA!”
Edgar in USA
Wednesday, January 30 at 10:22 PM
Wow, you applaud when someone looses their job? I don’t hear the same rhetoric when “textile” workers lose their jobs. Funny how standards change with such a one-sided (read blinded) reasoning applies.
mary in
Thursday, January 31 at 11:55 AM
“Wow, you applaud when someone looses their job? I don’t hear the same rhetoric when “textile” workers lose their jobs. Funny how standards change with such a one-sided (read blinded) reasoning applies.”
mary in
Its a hard world mary. Just look at your Walmarts treatment of the Jonquiere Wal-mart workers, when they threw them out of work. Why.....just because they exercised their legal right to union representation. I am sure Walmart officials felt good about teaching its so called “associates” a lesson.
Walmart will forever be a second class business. Its legacy will be that of a bully organization. It will be the shame of the business world in the history books.
Alex in Ontario, Canada
Thursday, January 31 at 05:51 PM
mary,
“I don’t hear the same rhetoric when “textile” workers lose their jobs”
Didn’t those “textile” jobs get lost after they went union? Shades of Norma Rae!!
RDS in
Friday, February 01 at 02:02 AM
Very Curious. Your Hostility Is Apparent!
I’m just curious why both “mary” and RDS chose to use quotation marks on the word textile. Is it because there really isn’t a “textile” industry in this country anymore. Unless you count the companies that are shipping the raw materials to places like Honduras, Mexico, Bangladesh, and China.
Or is it because they don’t consider textile workers to be worthy of higher pay or better working conditions? In that case, they could have put quotes around the word “worker.” We all know RDS’s playbook by now. Anyone affiliated with a union is a lazy good for nothing… hardly worthy of being called a “worker.” Right RDS? You’ve said so many times!
Now RDS brings up Norma Rae. That figures too! I bet RDS and “mary” were the only two people in the country who were actually betting against and booing Sally Field’s character of “Norma Rae” too. I bet RDS really thinks there was a real-life person named Norma Rae.
“Norma Rae,” was a depiction of the fight by Crystal Lee Sutton to get union representation at the company she worked for, J.P. Stevens, in Roanoke, NC.
Since RDS always prides himself on “pulling himself up” and seems to eschew “hard work” as the key to “success,” you’d think he’d be pulling for people like Crystal Lee Sutton. Crystal Lee Sutton worked hard most of her life. She admired work; when she described someone she liked, she’d often say “She’s a hard worker,” or “They’re good workers.” She is what people are talking about when they say “working class.”
She started working at 16. At 17, she was a “battery filler” on the 4 p.m.-to-midnight shift at a textile plant. At 19, she had her first child. At 20, she was widowed.
But no, RDS and “mary” would rather side with the greedy incompetent management of J.P. Stevens rather than acknowledge that the the union had some legitimate complaints.
So what happened to Crystal Lee Sutton for daring to fight for union representation? The company terminated her for “insubordination.”
What happened to the J.P. Stevens company? Like much of the rest of the textile industry in this country, it no longer exits. Before it filed for bankrupcy in 1997, it had reached a $20 million settlement with 2,900 Black employees who were discriminated against. The company also had been cited over 20 times for violations by the NLRB.
J.P. Stevens had also become renowned for its opposition to unions, and its intractability in labor negotiations. Does that sound like a company we all know?
Theme from “Norma Rae”
So it goes like it goes
Like the river flows
And time keeps rolling right on, oh
And maybe what’s good gets a little bit better
And maybe what’s bad gets gone
I, for one, hope to see the day when Wal-Mart “gets gone.”
ScrewedbyWal-Mart in Anytown, America
Friday, February 01 at 07:10 AM
Screwedby: I mentioned this on another thread ,but in light of your above post,I think it bears repeating.In the Huffington Post recently,there is an excellent article by Joseph Palermo entitled Republican Class Warfare. The body of the article contains startling info on how very little the non CEO workers wages have risen in the past few years, about $1.60 over 5 very years,actually.Also,excerpts from the new book by eceonomist Robert Kuttner are prominently featured. This is so evocative of the very issues we discuss here so frequently.It is well worth a trip and/or a cut and paste.
ddrb in
Friday, February 01 at 09:06 AM
Thanks For the Info, ddrb
Are you taking bets as to whether or not RDS or “mary” will bother to read this?
ScrewedbyWal-Mart in Anytown, America
Friday, February 01 at 12:03 PM
I feel bad for people that lose their jobs - at Wal-Mart or anywere else. My store just went Super Center and some of the people that were hired in and given full-time status were bumped back down to part-time on my shift (not sure about the others, I work overnights). Also, all Associates at the store were told to cut their hours for the next three weeks. Hopefully people aren’t going to lose their jobs soon. Our store is a very profitable store and I know for a fact that they are now out of debt from going Super Center and have HAD to have made a profit - but it just wasn’t as much as they wanted (opening day was disappointing). We got screwed on our bonus, too. During the “grass roots” meeting, the store Manager actually had the nerve to talk about how they had to pay the rent and the electric bill and started to tell us not to use too much toilet paper (no I’m NOT making that up) but at the last minute switched that into a story about people STEALING toilet paper and how we shouldn’t do that. Ridiculous.
Generic Wal-Mart Wageslave in Michigan
Friday, February 01 at 02:48 PM
You guys need to cut mary a little slack. She’s in unfamiliar territory at the moment with a weak dollar and an undeclared recession. Give her time and she will conclude the current economic ‘adjustment’ is just another example of the “beauty of free enterprise”.
Time to find some poor cash-strapped bastard and screw him out of his home. Ahh, the land of opportunity!
Ken V in Texas
Sunday, February 03 at 03:16 PM
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