NEW YORK — When Teresa McDowell shops at Wal-Mart, she sticks to buying basic household products and groceries, never crossing the aisle to pick up furniture or clothing.

"I'm pretty much an Abercrombie, Gap, J. Crew, Banana Republic person," the Atlanta resident said.

This spring, the world's largest retailer is trying to persuade customers like McDowell to pick up clothes and home furnishings as well, offering them trendier and better quality merchandise such as fluffier towels and stylish printed skirts.

Wal-Mart is hardly ignoring its core customers who shop for staples on a tight budget. But with rising gasoline prices and job worries forcing those consumers to pull back, Wal-Mart is trying to reach out to shoppers who buy clothing and home goods at other stores to perk up its slowing sales.

"Wal-Mart is paying more attention to trends," said spokesman Gus Whitcomb. "We are not going to stray away from our value message, but there are customers in the store who are looking for a little extra flair, and we want to make sure we serve them as well."

McDowell says she could be converted — if she likes what she sees. "If I find something funky, what the heck?" she said.

Industry analysts say it won't be easy, given Wal-Mart's utilitarian, no-frills image. They also say the discounter runs the risk of turning off its customers who may think Wal-Mart's is no longer the lowest price.

"Wal-Mart has been able to get the price-conscious customer, but they haven't been able to go beyond that," said analyst Marshal Cohen. "Target (Corp.) is still outmerchandising and outmarketing the Wal-Mart equation, and because of that, Wal-Mart is not going to grow."

The trendier merchandise at Wal-Mart carries slightly higher prices than its basic items, but it's generally up to 30 percent lower than competitors' prices, Whitcomb said.

Bentonville, Ark.-based Wal-Mart gave more responsibility over the past year to its fashion design department in New York. Its moves to spruce up merchandise are a response to increasing competition, particularly Target, which has upgraded its stock with affordable, stylish merchandise from designers like Isaac Mizrahi and Cynthia Rowley.

J.C. Penney Co.'s sales have also improved, helped by better merchandise. Wal-Mart also has competition from the combination of Kmart and Sears, now called Sears Holdings Corp., which plans a new store format expected to bring together powerful brands including Joe Boxer apparel and Martha Stewart Everyday home fashions.

Wal-Mart's strategy to focus on its 100 million weekly shoppers rather than reach out to new ones is a smart one, according to analysts. Just imagine the volume Wal-Mart could see if those shoppers bought one additional piece of clothing or home furnishings a month, said Wendy Liebmann of WSL Strategic Retail, a New York marketing and retail consulting firm.