Wal-Mart PC Sales
By ANNE D'INNOCENZIO (AP)
A move by Wal-Mart Stores Inc. to offer more and lower-pricedlaptops could give it an edge over key rival Best Buy Co. in thestruggle for back-to-school electronics business.The world's largest retailerannounced Thursday that it was increasing its assortment ofaffordable laptop computers — some in limited supply — with the aimof becoming a computer destination for college and high schoolstudents.
A key offering to be available starting Sunday is a $298notebook from Hewlett-Packard Co. with 3 gigabytes of memory and a160-gigabyte of hard drive. The price tag is more typical of thesmaller and less powerful laptops known as notebooks.
Spokesman Justin Barber for Minneapolis-based Best Buy notedthat Best Buy carries more than 45 PCs and Apple computer models,and its notebook prices start at $330 and netbooks at $250.
Winning over customers involves more than price, he said.
"We know it's equally important for consumers to feel confidentthey're getting the right product," Barber said.
Stephen Baker, an analyst at NPD Group Inc. market researchfirm, called the $298 price for the HP notebook aggressive but saidit's not groundbreaking; he's seen small computers with similarpower from major brands at that price elsewhere.
Bentonville, Ark.-based Wal-Mart worked with Dell Inc., AcerInc. and Toshiba Corp. as well as HP to deliver new products thatare high quality and affordable, Gary Severson, senior vicepresident of entertainment said in a statement.
"Our increased assortment delivers more targeted offerings fromgreat brands at dramatically affordable prices," Severson said.
Also coming to Wal-Mart this weekend are a $548 Acer-made Vistalaptop with an eight-hour battery, 3 gigabytes of memory and a320-gigabyte hard drive.
Wal-Mart wants to "make a big splash" in the PC market now thatCircuit City Stores Inc. is out of business, says Loren Loverde,director of tracker research at IDC, a technology research firm.
"It's a new place that consumers can go that will compete forfoot traffic with other rivals," Loverde said.
U.S. PC sales have declined over the past three quarters,according to IDC, but notebooks have been a bright spot as shoppersfocus on price.
Wal-Mart, looking past the benefits it has seen in therecession, is searching for opportunities like consumer electronicsthat will sustain its growth as the economy recovers. As part ofits efforts to stake a bigger claim in the PC business, itrenovated its computer displays at 1,200 of its 3,600 U.S. stores.
Over the last two years, Wal-Mart has been stocking up withmajor electronics brands, putting more pressure on rival Best Buy,which has faced overall sales declines as shoppers cut back onbig-ticket items.
Still, Wal-Mart faces challenges. NPD's Baker said Wal-Mart hasstumbled as it seeks a footing in the PC business without thedisplays or customer service Best Buy offers.
Best Buy officials told analysts on a recent conference callthat sales of notebook computers were among the bright spots andhelping offset declines in its sales of digital cameras, movies andappliances.