Wal-Mart gunning for Best Buy, Again.
Filed under: Bargains, Shopping, Technology
There's suddenly buzz that Wal-Mart has declared war on electronics retailers Best Buy and Amazon, but why? Of course it has. Keeping up with and conquering the competition is what retailers do and few do it better than Wal-Mart. With Circuit City gone, there's a void to fill and even in a down market there's enough business to raise all boats. Heck, even Sears is seeing a bump in online traffic. The Wall Street Journal paid a visit to the Bentonville, Ark. headquarters and scored some great face time with the executives in charge of the category, all to coincide with the announcement that Wal-Mart is rolling out new merchandising and expanding CE departments in 3,500 stores today. But is this a pointed initiative or a continuation of existing policy?
Wal-Mart's electronics departments have steadily expanded over the years, moving from enclosed and secure areas in the center of the store to vast expanses of slick flat panel displays and portable technology. Just three years ago it embarked on a similar category upgrade. It sells some coveted Apple products, including the iPhone. Continuing to keep assortment fresh is an imperative for Wal-Mart to be a real player in this category. Refreshing departments in stores is business as usual, AND a move to take advantage of the market.
According to the Wall Street Journal, Circuit City's demise left $11.5 billion in sales up for grabs and that revenue is largely being split between Wal-Mart and Amazon. But don't get too excited about big bargains as these stores all vie for your business. Sort of. The margins on electronics are so thin that a $10 differential in price is often the entirety of the profit a retailer stands to make on the sale of even a LCD TV. Still for many, $10 saved is nothing to sneeze at.
Reader Comments (Page 1 of 1)
5-19-2009 @ 10:40AM
Mikel Grenier said...
I know Wally World's is trying to get more items, but when I think of electronics, It's NOT Wal*Mart. Wal*Mart, cannot live down the reputation of it's past. It seems to be a trashy place to shop. I don't see "high end" people, who have money to spend, shopping there. If they do, they hike the pants 3/4 way down their legs, have plenty of tats, etc. I have not just seen this sort in my own local Wally World, but in many locations, small farmtown to big city.
I also so not see the BRAND NAMES of QUALITY merchandise in the CE department. GPX is not really a quality name., same for Fujitsu. They seem to sell the low end of the spectrum. As a person who delas with electonics on a daily basis, I can attest the the lack of quality of their [Wal*Mart's] products. I would not even consider "Sanyo" as a quality item.
Also, Lets face the fact that Wal*Mart is not full of selection.
Seems that Wa*Mart has allot of brand expansion to do, Not just the store expansion.
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5-20-2009 @ 9:20AM
eleanor howard said...
i agree that wal-mart is trashy.it is suppose to be american made but i dont see where that is true.I have yet to buy at walmart and not have to go get it re;laced or my money back. why cant they let best buy or any other store have a fair chance at survival.ESPECIALLY WHEN MERCHANDISE IS A MUCH MUCH BETTER QUALITY. PEOPLE NEED TO WISE UP AND SMELL THE ROSES AS FAR AS WAL MART IS CONCERNED
5-20-2009 @ 7:28PM
s.smith said...
Lucky you mikel--but not everyone has an extra 5 or 10 thou to spend when shopping and I find it nice after shopping to have a few bucks left to my name and wal-mart if nothing else is a great place for the average guy to get his money's worth--
no pretence --just low prices and what more can you ask-
you hit it right on the head the big buck exec's don't shop at wal-mart but about a zillion regular joes do- so quit griping and let us live our miserable lives the best we can .
5-20-2009 @ 8:59PM
Mikel Grenier said...
S. Smith:
I am also not with allot of funds. Icurrently make $1.25 more than the minimum wage, as a broadcaster, at the number one radio station in my "medium market." I now make less now that Cumulus Media is forcing us to cut 1/4 of our incomes, by furloughing us, in the next month. I am in the same situation as most.
However, I do not want to skimp on values and quality. My values say that I am not "poor," But moneyless. I also do not believe that products that do not do a quality job, for less, should not be on the market. Wal*Mart sells most of these... at an American cost.... JOBS and a better economy. I am definitely willing to pay through the nose ofr quality, if it holds up longer, and for USA jobs, to keep people off welfare and/or unemployment.
It must be nice that people do not care about making China king of the economy, and want to buy thier untested and flimsy wares. I need not remind most people who support Wal*Mart, that they and discounted and dollar stores, supply funds for potentially poinsoning and hurting American citizens. For this is the Wal*Mart way. Make no note that the workers in Wal*Mart get nothing, but a simple wage.... and control on how to vote, to keep thier jobs, along with food stamps.
So, before anyone decides that they are worse off and have to shop there, take another look. There are people worse off than you.
On another note: Wal*Mart is not always the cheapest, in price either. Big Lots, Kroger and the forever cheaper ALDI, have much better prices, nore often. Shop around, You'll see what I mean. "Low Prices... Always" had been on TV many times before, on how it is not true. To this day, I find wares elsewhere that is cheaper, and better built. Oh and maybe a more upscale clientelle.
5-20-2009 @ 8:15AM
Mikel Grenier said...
Another note: It's quite fitting with my comment that the pic chosen is of a "not well kept" store. Notice the sign says "WE SEL FOR LESS" Very appropriate in displaying my comment above typical Wal*Mart guests. If they clean the store, Keep up on the facade and grounds, more upscale people may shop here too. That in turn might make better brands.
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5-20-2009 @ 12:20PM
Arron Persin said...
Wal Mart is the only shop in my town. I buy dvds there but I do prefer Amazon any day of the week. Wal Mart is always full of well fare cases, trailer park trash, fat and ugly people. The lines are always slow and there is about 20 employees just walking around doing nothing. Back to electronics though, the people here dont know a damn thing about the products. I've insulted many workers with my knowledge of products.
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5-20-2009 @ 3:20PM
jason said...
In the 80's there was a running joke about Kmart being cheap (low quality) Walmart has now gained this reputation for a lot of people. They demand such low prices from their suppliers that cheap components are used and you end up with poor quality products. They'll never be able to touch specialized and inexpensive stores like Best Buy who have superior brands and selection. Hopefully the average person realizes how poor quality and unethical this store is and doesn't contribute to their greed.
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