Wal-Mart to revamp its struggling apparel unit

NEW YORK (Reuters) - Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) is restructuring its apparel operations, closing its product development and sourcing divisions, and eliminating dozens of positions, the world's largest retailer said on Wednesday.

It plans to organize the struggling apparel business around two "hubs" - brand merchandising and buying.

"The restructured apparel organization is built around brands that make clear statements and whose teams are accountable for financial returns," Wal-Mart said in a statement.

In a move to compete with Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz), Wal-Mart tried to sell hipper clothes, such as skinny jeans and velvet blazers. But the strategy backfired with its shoppers, who were looking for basic, classic and affordable clothing.

It spent last year working to get its apparel business back on track. Claire Watts, the executive who oversaw its apparel merchandising, resigned, and Wal-Mart is now expanding the presence of its apparel unit in Manhattan.

The retailer said that brand merchandising, based in New York, will be responsible for "maximizing the financial performance of private label brands," and will also be responsible for textile design, vendor selection and cost negotiation.

Its buying organization, which will continue to be based in Bentonville, Arkansas, will decide which products to place in each of its stores and how much those products will cost.

(Reporting by Ritsuko Ando and Nicole Maestri; Editing by Derek Caney)