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Wal-Mart Decides To Get Fashionable ... Again

Despite Wal-Mart's assurances that it has returned to selling the most basic clothing, it has been striking deals to bring in new brand-name designers and apparel. Among them is the once red-hot Norma Kamali, who is creating a clothing line for Wal-Mart that will debut in the fall. It also has signed deals with California surfer brand Op and Jones Apparel Group's junior jeans line l.e.i.

The world's largest retailer has tried for years to muscle into the cutting-edge fashion business, but its big dive into higher-priced apparel alienated Wal-Mart's loyal core customers.

Now Wal-Mart is wading back into the fashion arena, learning from its mistakes in order to restyle its strategy with an emphasis on both fashion and quality at a low price. It restructured its apparel division in February, transplanting a big chunk of the operation to New York. It's a tricky time to try, with the weak economy slowing sales of discretionary items like fashion apparel. But the heart of the discounter's new strategy appears to be an effort to return to its roots, with a strong focus on selling more everyday apparel.

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