Wal-Mart apparel to focus on 'mainstream value'

ROGERS, Arkansas, June 5 (Reuters) - After stubbing its toe with a foray into fashion two years ago, Wal-Mart Stores Inc (WMT.N) is now focusing on mainstream clothing to better appeal to its target shoppers who are on a budget, while still investing in growth categories.

The world's largest retailer is reducing the number of styles it offers, part of a wider plan to clean up the look of its stores and make shopping easier, while expanding key growing programs.

"We sell mainstream value and we bring mainstream value to our customers," said Dottie Mattison, general manager of apparel for Wal-Mart in the U.S. "We have key items that fit the mainstream of America."

Two years ago, Wal-Mart stumbled as it tried to sell hipper clothing, like skinny jeans or velvet blazers, in a bid to compete with Target Corp (TGT.N). The attempt backfired with its shoppers, who were looking for basic, affordable clothing, and sales fell.

Now, the company is going with basic apparel items like socks and underwear, which consumers replace frequently as they wear out.

Wal-Mart is also putting more money behind three growth areas: key items for $10 or less; the "Express for Less" line of T-shirts that feature popular images, whether Hannah Montana or team sports logos; and activewear.

"We're working on expanding these programs and bearing down on the investment there," Mattison said.

Other mass-market chains like Target or Kohl's Corp (KSS.N) have found success pedaling cheap-chic clothes. But Wal-Mart has since admitted it moved too far, too fast, and its core low-income shoppers did not warm to the new styles, nor to the higher prices they carried.

Mattison said the company was also trying to reduce the number of styles "for the sake of clarity," a strategy that Wal-Mart is embracing across all its divisions.

Mattison spoke during a media day with reporters in advance of the company's annual shareholders meeting. (Reporting by Alexandria Sage; editing by Jeffrey Benkoe) (213-955-6781, alexandria.sage@thomsonreuters.com)