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Wal-Mart plans aggressive holiday electronics push


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FROM THE NEWS WIRE:

 

CHICAGO (Reuters) - Wal-Mart Stores Inc. (NYSE:WMT - news) said on Monday it would promote key electronics such as flat-panel televisions, MP3 players, video gaming consoles and laptop computers as part of an aggressive holiday campaign.

 

Less than one week after the world's biggest retailer declared an early start to the holiday shopping season by cutting prices on more than 100 popular toys and games, Wal-Mart said it intends to be the lowest-priced retailer in gift categories such as electronics and jewelry as well.

 

Wal-Mart has expanded its offering of flat-panel televisions, bringing in name-brands such as Sony and Samsung and stepping up advertising on prime programs including ESPN's Monday Night Football.

 

Gary Severson, Wal-Mart's head of electronics and toys, said the company's surveys showed that it offered the lowest price on flat-panel TVs 88 percent of the time.

 

"We're working on that other 12 percent rapidly, believe me," he said at Wal-Mart's analyst meeting on Monday, adding that year-over-year sales growth was in the triple digits for flat-panel TVs.

 

In MP3 players, he said Wal-Mart was excited about the launch of Microsoft Corp.'s (Nasdaq:MSFT - news) Zune music player and expected continued strong growth in the category.

 

New video game platforms such as Sony Corp.'s (6758.T) PlayStation 3 and Nintendo Co. Ltd.'s (7974.OS) Wii should boost demand, but Severson said the retailer had tempered its expectations because of limited supplies.

 

"We've been through these launches a few times and we didn't bake all of (the gaming companies') projections into our sales because we anticipated some of the (supply) numbers coming down from them," he said.

 

In laptop computers, he said the retailer would showcase brands such as HP and Toshiba on its end-cap displays along the store's main shopping aisles.

 

Wal-Mart's aggressive push into electronics has raised concerns about increased competition for specialty chains Best Buy Co. Inc. (NYSE:BBY - news) and Circuit City Stores Inc. (NYSE:CC - news), and their shares have been under pressure in the past week, although both edged up on Monday.

 

Credit Suisse analyst Gary Balter said those concerns were overdone, noting that the specialty stores were better at explaining new technology and accessories, and providing services such as in-home installation.

 

"So when the stocks decline over the new improved Wal-Mart approach to consumer electronic selling, remember, there will be a Christmas, and we would expect our consumer electronic players to be a part of it," he wrote in a note to clients.

 

Wal-Mart's stock was up $1.74, or 3.5 percent, at $51.11 in late afternoon trading on the

New York Stock Exchange after it announced plans to curtail U.S. expansion and spending.

 

Best Buy was up 15 cents at $55.33, after losing 4.3 percent over the past five trading days. Circuit City gained 38 cents to $27.43 on Monday, but has fallen 6 percent over the past five days.

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Thanks for this news. I need a camcorder, so I hope it will be one of their items.

Ooo, that would be cool. Too bad they don't come pre-charged. You could pop in a dvd/card and record your BF experience, first hand...

 

It would be like "Blair Witch", only with scary, high-interest credit cards and crazed lunatic shoppers. :cheesy:

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Bad for retailers - good for us!

Well its about time. I don't think its bad for retailers, I think competition is good as it lowers prices and increases sales. Most electronics have a 30%+ margin, even higher on plasma and lcd tvs, so a few lower prices won't hurt. It might hurt on computers I guess which are already sold almost at cost.

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I dunno I'm really torn between the Zune and Ipods. I still don't know a thing about this Zune thing but if it's going to be cheaper than any Ipod deals then I might give a try.

The zune is only going to be a couple dollars cheaper than the ipod. The wireless it offers is only good if you know someone else who also owns one and even then only for transferring a song to each other and only being aloud to listen to it 3 times.

 

The features are close but i'd go with the ipod for the simple reason of the itunes software is head and shoulders better than anything else. And the store is the best. Especially with free podcasts(gotta love free).

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Awesome! I noticed our local Wally World totally renovated their electronics department over the summer. They have a lot more stock now than they did!

 

I'm definately in on the desk top computer and camcorder BF sale if they have them on sale!

 

Thanks for the post!

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hi guys

I got an ad for nov5-11

$398

compaq presario v5305wm laptop computer

mobile amb sempron processor 3300+

512 mb,ddr memory. 60 gb hard drive.

reads dvds and burns cds. #v5305wm.

 

one time offer: notebook backpack with travel mouse and

4-port usb hub, just 29.96

 

one time offer: supplies limited. minimum 15 per store

limit 1 per customer. sorry no rain checks.

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99.92 one time offer

durabrand 9-inch

portable dvd player

compact player with large lcd screen

car charger adapter and 2.5 hour rechargeable battery

#PDV-709

 

these are all on the front page and say one time deal

and this is for this area and a lot of times different parts of the states charge different.

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