In Reply to: Wal-Mart upgrades consumer electronics departments. posted by Hepcat on May 15, 2007 at 06:11:49:
Digital flat panel TVs are higher dollar, higher margin items. Buyers looking for these items tend to have more disposable income than the average WalMart shopper. While WalMart isn't the prefered destination for upscale shoppers, WalMart is betting that they'll hold their noses and buy based upon price. When they do walk in the store, they'll also see a "greener" WalMart which the company hopes will improve their reputation with this critical consumer group. Growth prospects in the US are difficult, so they have to do something to improve sales beyond single digit returns.Risky business. The last time they tried to move away from low prices for basic goods to their core customers, sales declined and the stock price dropped.
Best,
Ross
This post is made possible by the generous support of people like you and our sponsors:
Follow Ups
- Re: Wal-Mart upgrades consumer electronics departments. - Ross 18:46:08 05/15/07 (0)