Wal-Mart Plans to Reduce Space for Electronics in Stores

Wal-Mart Stores Inc. (WMT), the world's biggest retailer, plans to cut back on space for electronics as sales in that category have declined, contributing to the company's two-year U.S. sales slump. The company, which is based in Bentonville, Arkansas, will reduce the floor space devoted to items like flat-screen televisions and give some of that space to apparel, according to Rosalind Brewer, who runs the Wal-Mart East division. Brewer spoke at a retail conference in Atlanta today. The reduction is a reversal of Wal-Mart's 2009 move to allocate 21 percent more floor space to entertainment gadgets and comes after electronics contributed to a 1.8 percent decline in sales at U.S. stores open at least a year in the fourth quarter, its seventh consecutive drop. "It's something Wal-Mart has needed to do for a year," said Craig Johnson, president of Customer Growth Partners, a New Canaan, Connecticut-based consulting firm, in an interview. "You don't need as much space in that area with products shrinking and purchases going online, and electronics has narrow profit margins. Floor space is a scarce commodity."

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

IntraSonic Technology - I2000 Music Distribution and Intercom System

IntraSonic Technology - I2000 Music Distribution and Intercom System

Get wired for sound throughout your home with a new state-of-the-art communications and entertainment system! The I2000 Music Distribution and Intercom Systems provide a wide variety of features at an affordable price so you can enjoy the luxury of music throughout every room in your home without moving a muscle. Interested in wireless music streaming? See our optional Bluetooth Receiver