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Wal-Mart to close its New York apparel sourcing office
07 Nov '11
2 min read
Wal-Mart Stores Inc. has announced that it will be closing down its New York office involved in product development, sourcing and purchase of apparels for the world's largest retailer.
All the functions being handled at the company's New York office would be transferred to its offices in Bentonville, Arkansas by February 1, 2012. The office on Broadway employing about 275 employees was opened in 2009.
Bill Simon, US CEO, said the retail company is focusing more on basic apparels after failing to appeal to fashion-focused shoppers. The company told shareholders this month that the sale of basic clothing items like jeans, socks and innerwear has increased at the retailer's stores while the total apparel sales have declined.
The company feels it does not require an office in New York's expensive area to sell basic clothing, especially when it is working to reduce costs after sales at US Wal-Mart stores open at least a year have witnessed a decline for nine consecutive quarters.
At US Wal-Mart stores, apparel items accounted for 7 percent of the total US$ 260.3 billion sales in 2010, compared to an 8 percent contribution of apparel items in 2009 sales.
Wal-Mart serves customers and members more than 200 million times per week at more than 9759 retail units under 60 different banners in 28 countries. With fiscal year 2010 sales of US$ 405 billion, Wal-Mart employs 2.1 million associates worldwide.
All the functions being handled at the company's New York office would be transferred to its offices in Bentonville, Arkansas by February 1, 2012. The office on Broadway employing about 275 employees was opened in 2009.
Bill Simon, US CEO, said the retail company is focusing more on basic apparels after failing to appeal to fashion-focused shoppers. The company told shareholders this month that the sale of basic clothing items like jeans, socks and innerwear has increased at the retailer's stores while the total apparel sales have declined.
The company feels it does not require an office in New York's expensive area to sell basic clothing, especially when it is working to reduce costs after sales at US Wal-Mart stores open at least a year have witnessed a decline for nine consecutive quarters.
At US Wal-Mart stores, apparel items accounted for 7 percent of the total US$ 260.3 billion sales in 2010, compared to an 8 percent contribution of apparel items in 2009 sales.
Wal-Mart serves customers and members more than 200 million times per week at more than 9759 retail units under 60 different banners in 28 countries. With fiscal year 2010 sales of US$ 405 billion, Wal-Mart employs 2.1 million associates worldwide.
Fibre2fashion News Desk - India
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