Apparel business fit to succeed in tough environment.(WAL*MART: A MID-YEAR REPORT)

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Throughout 2007, whenever Wal-Mart talked about financial results, it was always categories such as food, entertainment and health and wellness that were credited with driving results. That situation began to change earlier this year when, for the first time in several years, the apparel department was mentioned in the same breath with the more familiar drivers of growth.

Wal-Mart's apparel department has improved and there are a lot of reasons why, including the fact that the increased cost of gasoline and food have swelled the ranks of price-conscious consumers who now view Wal-Mart as a viable destination for apparel. The company has …