Russell Simmons is a hip-hop pioneer. He’s an activist; a philanthropist; a role-model for young, disadvantaged youth.

But is he really launching a new line at Wal-Mart? And now???

Yes, apparently he is. On Feb. 15 Wal-Mart will roll out a new line of men’s clothing designed by Simmons in 350 stores - about 10% of its U.S. outlets - and on its Web site.

[T]he move seems surprising, especially as Wal-Mart flopped famously in its previous efforts to sell more fashionable, pricier clothing… But as Wal-Mart slows its store expansion, it needs to sell higher-profit items to continue generating growth, and apparel is one segment that can still draw new customers.

The clothing items will be priced anywhere from $10-30, not terribly expensive, but some analysts are still questioning the move. From BusinessWeek:

Still, the new line’s timing could not be worse, some analysts say, since Americans have chopped discretionary spending so dramatically.

Wal-Mart to Launch Simmons Clothing Line [BusinessWeek]

As most apparel retailers announce job cuts and store closures because of sluggish sales, it is a precarious time for any of them to launch a new brand. But on Feb. 15 Wal-Mart Stores (WMT) will roll out a new line of men’s clothing designed by hip-hop entrepreneur Russell Simmons in 350 stores, about 10% of its U.S. outlets, and on its Web site. The launch will come less than a week after the world’s largest retailer announced that it will move buyers in the apparel division from its Bentonville (Ark.) headquarters to New York to increase the focus on fashion.

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WAL-MART AND THE ‘POORING OF AMERICA’
I’m not sure where the phrase “Pooring of America” came from, but it’s perfect to explain Wal-Mart’s effect on working families. Seeking Alpha ponders why Wal-Mart and McDonald’s are doing so well right now.

What are McDonald’s and Wal-Mart Telling Us? [Seeking Alpha]

I am very intriqued by our top 2 choices for the “Pooring of America” trend - Walmart (WMT) and McDonalds (MCD) - what exactly are the charts above telling us?  If we are to enter a long drawn-out recession, which I have believed, these seem to be screaming buys here. The only question is credit - how does a lack of credit potentially hurt both. They are not expanding a ton, in the U.S. at least - perhaps with Wal-mart it’s financing of inventory, but I cannot wrap my mind around this behavior.

Wal-Mart gets downgraded while stock up in 2008 amid the turmoil [BloggingStocks]

Will Wal-Mart weather the storm? To a point, it already is. Sure, all retailers are expected to have a dismal holiday season this winter, but Wal-Mart will do better than the competition. It has more stores, more pricing leverage and more wherewithal to hold customers hostage with lower prices and inventory turns at a time when it’s needed most. Perhaps we’ll see WMT return to the $60/share level by Thanksgiving—if not sooner.

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Maybe in some parallel universe - where marketers are kings and consumers buy everything that’s advertised - this strategy makes sense, but we just can’t seem to understand how holding a fashion show is supposed to send the message that Wal-Mart is no longer interested in fashion.

See, Wal-Mart has had a lot of problems with its apparel lines. When it sold basic (read: ugly) clothes like high-waisted jeans and shapeless t-shirts, no one bought them because they were, well, ugly. So then Wal-Mart started selling “trendy” items like spandex leggings. Unsurprisingly, the spandex leggings didn’t sell either and Wal-Mart vowed to never go upscale again.

So the retailer’s recent fashion show in San Francisco’s supertrendy Union Square doesn’t seem to make sense. Is Wal-Mart planning to roll out a line of leather mini dresses just in time for back to school? If not, what’s the value retailer doing with the likes of high end designers?

Wal-Mart’s fashion show previews back-to-school [Reuters]

Wal-Mart Stores Inc presented a colorful, casual line of youthful looks for kids and teens on Saturday at a fashion show that previewed the mass-market chain’s new low-cost offerings for back to school.

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