Wal-Mart (WMT) Taking Share In Apparel Is A Negative For Other Retail Players

Pali Research published a report that said Wal-Mart (NYSE: WMT) taking share in apparel will be a negative for other apparel related retailers. Wal-Mart has long struggled in the apparel category, but now Wal-Mart is making strong inroads and grabbing market share in the apparel segment. Pali said that this has likely happened as consumers are forced to save or cut their spending and are looking at cheaper alternatives for their apparel.

In fact, for September, apparel comps were down (0.5)% at Wal-Mart versus (4.6)% at competitors. Pali Research thinks the slow apparel sales are likely originating from moderate department stores like J.C. Penney (NYSE: JCP), Kohl's (NYSE: KSS) and Gap's (NYSE: GPS) Old Navy division.

Pali did say other beneficiaries of this trade down include companies like TJX Companies (NYSE: TJX), Aeropostale (NYSE: ARO) and Ross Stores (Nasdaq: ROST).

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide.

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