International News - Beat Wal-Mart on style not price

US clothing retailers must concentrate on presentation, marketing, service and merchandise, and avoid a price war to stay ahead of Wal-Mart.

According to US market researchers Retail Forward, store groups can take advantage of the limited scope for presentation in Wal-Mart outlets and its often cautious approach to marketing.

It warned retailers that any attempt to compete with Wal-Mart on price was likely to fail. 'Don't think you can meet Wal-Mart's pricing challenge.

Kmart tried and suffered the consequences. Compete on the basis of other key attributes, such as differentiated merchandise, better presentation, distinctive target marketing and better service - all areas of vulnerability for Wal-Mart,' the report said.

According to the study, the profile of Wal-Mart shoppers that buy clothes comprised mainly young parents buying for themselves and their children.

Almost 60 per cent of these comprise 30 per cent of the overall number of shoppers buying clothes for themselves.

This compared with only 6 per cent of clothing shoppers falling into the 'younger couples' category and 12.7 per cent of 'younger singles'.

Wal-Mart sees Kohl's, Target and JC Penney as key threats in clothing, the report says. The introduction of Levi's Signature and George to replace older lines is a direct response to these threats.

Wal-Mart's key challenge will be to persuade more women to shop there for their own clothes.