Wal-Mart head of apparel merchandising resigns

(Adds details, background)

NEW YORK, July 20 (Reuters) - Wal-Mart Stores Inc. (WMT.N) said on Friday that Claire Watts, who was in charge of the retailer's apparel merchandise, has resigned to "pursue other career interests," as the world's largest retailer continues to work to revive sales in the flagging division.

Wal-Mart said it named Dottie Mattison senior vice president overseeing women's apparel, jewelry, shoes and accessories, and apparel product development.

It said Mark Larsen is overseeing men's, kids and baby. Mattison and Larsen will report to John Fleming, Wal-Mart's chief merchant, said Wal-Mart spokeswoman Sarah Clark.

Wal-Mart has struggled with months of poor clothing sales at its namesake discount stores and has said it hopes to be able to show improvements in the business by the back-to-school shopping season.

At its annual shareholders' meeting in June, it elected Allen Questrom, a retail industry veteran who helped revitalize J.C. Penney Co. Inc. (JCP.N), to its board, and the addition of Questrom was seen by analysts as a means to help get Wal-Mart's apparel business back on track.

"The changes, which include the resignation of Claire Watts and the promotion of several people internally, may be the first steps that recent board addition Allen Questrom has suggested since coming to Wal-Mart in early June," wrote JP Morgan analyst Charles Grom in a research note, outlining the management changes.

"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," he wrote.

Wal-Mart shares were down 73 cents, or 1.5 percent, at $48.06 in afternoon New York Stock Exchange trading.

(Reporting by Nicole Maestri)

((Editing by Gerald E. McCormick; Reuters Messaging: nicole.maestri.reuters.com@reuters.net; (646) 223-6173)) Keywords: WALMART MANAGEMENT/

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