A push into higher-end consumer electronics is boosting Wal-Mart's sales and roiling competitors. By relying on well-known brands and lower prices, the retailer's estimated $22.6 billion in sales
at its super-centers and discount stores in 2006 trailed market leader Best Buy ($31 billion), but was well ahead of No. 3 Circuit City ($11.9 billion). Analysts expect significant gains this year.
Two factors have helped propel Wal-Mart's electronics surge. First is Wal-Mart's remodeling of its electronics departments, offering snazzier in-store displays and big-name brands,
such as Nintendo and Samsung. Second: Prices have fallen so steeply for previously big-ticket electronics, like flat-panel TVs, that Wal-Mart's cost-conscious shoppers can now afford them.
Wal-Mart's electronics onslaught has rocked the market's established players, which have been hit hard by plummeting prices in flat-panel TV sets and customers who have turned to the Web. CompUSA
and RadioShack have closed hundreds of stores. Tweeter Home Entertainment sought bankruptcy protection. And Best Buy and Circuit City have sacrificed margins to keep up with Wal-Mart.
advertisement
advertisement
Read the whole story at The Wall Street Journal »