Wal-Mart working to improve home, clothes sales-CFO

NEW YORK, Sept 18 (Reuters) - Wal-Mart Stores Inc (WMT.N) is seeing improvements in its home and apparel businesses, but there is still much work to be done to get the categories back on track, its chief financial officer said on Tuesday.

"We're still struggling with negative traffic in these categories and have lots of room for improvement," said CFO Thomas Schoewe, speaking at a Bank of America conference that was broadcast over the Internet.

Last year, Wal-Mart, the world's largest retailer, downplayed its discount roots to try to expand its image beyond that of a low-priced retailer. It stocked more upscale items such as high threadcount sheets, trendy clothes and plasma TVs, hoping wealthier shoppers would spend more in its stores.

While its efforts to boost electronics sales by increasing its selection of name-brand items and renovating its electronics sections resonated with its shoppers, its core lower-income customers balked at other changes, like its push to sell trendy clothes.

That left it with heaps of unsold merchandise. Wal-Mart has been working to clear its stores of poor selling clothing and home goods, resulting in price cuts that have undermined its sales and margins.

Schoewe said the retailer is in "very good shape" now when it comes to its apparel and home inventory.

But he said the retailer is still not happy with its initial efforts to remodel its home area and is experimenting with a different home section layout at a store in New Jersey.

Wal-Mart shares rose 39 cents, or almost 1 percent, to $43.71 in late morning New York Stock Exchange trading. (Reporting by Nicole Maestri)