Finally victorious over longtime archrival Circuit City Stores Inc., Best Buy Co. is preparing to fight an even more powerful foe: Wal-Mart, according to a story in the Wall Street Journal.
Wal-Mart chief operating officer Brian Dunn, who takes over for retiring CEO Brad Anderson in June, is leading the charge to head off Wal-Mart Stores Inc.’s brutal price competition, according to a story in the Wall Street Journal. The strategy: give consumers something the discounter cannot: more interactive stores, where consumers can step into the world of a new videogame or see their faces captured by a high definition video camera.
Analysts expect Best buy to pick up at least half of the business of Circuit City, says the story, written by Miguel Bustillo. The retailer closed its doors earlier this month, a victim of management and sales miscues and the recession.
Wal-Mart has ratcheted up its once-tiny selection of big-brand TV sets, video games and mobile phones to compete, and recently reported that electronic sales had fueled a market-leading 5.1% February rise in same-store sales.
Best Buy remains well ahead of Wal-Mart in U.S. electronics sales, but Wal-Mart is gaining in important areas such as flat-panel TV sets, the story says. Best Buy’s sales have shrunk during the recession, and it has cut inventory to compensate.
The story doesn’t say anything about an increased advertising budget for Wal-Mart or Best Buy.
WSJ Online subscribers may read the full story here.