NEW YORK (CNN/Money) - Wal-Mart Stores Inc., the world's biggest retailer, said Friday it is ending its vendor relationship with the Kathie Lee Gifford apparel brand.

"We've had a great relationship with Gifford, but times and demand change. Wal-Mart is in the process of phasing in new products all the time," Wal-Mart spokesman Tom Williams said. He added that Wal-Mart is in the process of evaluating some of its other apparel brands.

Gifford, the former co-host of the morning television show "Live with Regis & Kathy Lee", launched her clothing line, Kathie Lee Collection, at Wal-Mart in 1995.

A year later, the brand became embroiled in controversy after two labor activist groups -- the National Labor Committee and the United Students Against Sweatshops -- alleged that some of the Gifford products were manufactured in Honduran and El Salvadorian sweatshops employing children. Gifford later collaborated with the Labor Department in a campaign to put an end to sweatshop labor.

Williams declined to comment on whether the labor controversy surrounding the brand played a part in Wal-Mart (WMT: down $0.46 to $53.30, Research, Estimates)'s decision.

Gifford spokeswoman Cristine Trapichio said both Gifford and Wal-Mart in 2000 had mutually decided to end the relationship in 2003.

"This was Kathy's decision back in 2000, and both Wal-Mart and Kathy decided on a three-year period before that relationship came to an end," Trapichio said. "Also, since Kathy does not have an exclusive contract with Wal-Mart, the company could have ended the contract at any point." Wal-Mart's Williams declined to comment on Trapichio's remarks.