Wal-Mart Powers Up Its Electronics Department

Walmart Stores Inc. is launching a major campaign to grow its share of the U.S. $171 billion consumer electronics market with this week’s roll-out of expanded and upgraded entertainment/technology departments in more than 3,500 of its U.S. stores.

In addition to wider aisles and more interactive displays, the new-look electronics sections will build out the stores’ product range with high-visibility brands such as Nintendo and Apple, as well as higher end televisions from Sony Corp. and Samsung Electronics, according to The Wall Street Journal (WSJ)). Coming soon will be Dell Inc.’s new Studio One 19 touch-screen computers and Palm Inc.’s Pre smart phone—moves that experts quoted by WSJ say are marked departures from a time when some manufacturers reserved breakthrough products for specialty retailers.

Though Walmart has been evolving its electronics merchandise beyond the basics for nearly five years, WSJ quotes Gary Severson, Walmart’s senior vp of home entertainment, as saying Circuit City’s decision to file for bankruptcy last November left its business “up for grabs.” Another factor in the timing is the influx of affluent shoppers who are discovering—or rediscovering—Walmart.