Wal-Mart to sell build-your-own computers

[Phlegm]

From Reuters:

CHICAGO - Wal-Mart Stores Inc. will start selling build-your-own-computer components in more than one-third of its U.S. discount stores this month as it looks for ways to tempt shoppers to buy more than just low-margin food.

Wal-Mart currently offers only prepackaged bundles of personal computers and accessories in most of its stores. With the build-your-own-computer counters, shoppers can choose between several different components.

Such components include central processing units — the brain of the computer that powers its basic functions — as well as monitors, keyboards and mice that customers can combine to create customized packages they can load in a shopping cart and take home right away.

The retailer began testing build-your-own computer counters in about 20 locations last year, and is now introducing them in 1,200 of its 3,200 U.S. discount stores, said spokeswoman Jolanda Stewart.

It expects to offer the merchandise in some 1,400 stores by the end of the year, and possibly more in 2007.

Wal-Mart's entry into a category can raise alarms because the retailer's persistent price-cutting pressures competitors' profit margins. It has been blamed for bankruptcies in sectors ranging from groceries and toys.

But analysts said it was unlikely that Wal-Mart would pose much of a threat to the likes of Dell Inc., which mastered the made-to-order computer model and offers a much wider selection. They also noted that Dell makes most of its money selling computers to businesses rather than individuals.

Wal-Mart, the world's biggest retailer, is the No. 1 seller of products ranging from dog food to diamonds, but it has not managed to gain as much market share in computers. Wal-Mart made a big splash last November when it sold laptop computers for $398 on the day after Thanksgiving, however.

Forrester Research analyst Ted Schadler, who follows the consumer technology sector, said Wal-Mart has the potential to become a key destination for computer shoppers.

"People buy on price," he said. "If Wal-Mart is competitive on price — which of course it will be — it's easy for Wal-Mart to be a destination."

Wal-Mart has been adding more upscale merchandise such as flat-panel televisions and fashionable clothing in the hope of getting customers to buy more than just food and commodity items, which carry low profit margins.

[dammuzis]

there goes dell

[labbats]

I think it's called Fuse.

[mofish]

I think it's called Fuse.

[Hound]

Wal-Mart has set a pretty good precedent for quickly mastering and subsequently
dominating a new market:

The Wal-Mart Effect, Charles Fishman

In groceries, as in other areas of retail,
Wal-Mart isn't just the first among equals; it is unchallenged. The company that essentially
didn't exist as a grocer 15 years ago now sells more food than Kroger (est. 1883) and
Safeway (est. 1915) combined. Nationwide, Wal-Mart has about 16 percent of the grocery market.
In many individual cities, though, it has 25 or 30 percent of the grocery market -- one out of
four, or one of three families do their food shopping at Wal-Mart.

The company isn't just the largest retailer in the nation and in the world. For most of
this decade, Wal-Mart has been both the largest company in the world, and the largest company in
the history of the world. In 2006, Wal-Mart will be bumped from the number-one spot on the Fortune
500 list of the largest companies by ExxonMobil, whose sales will surge past Wal-Mart's, but only
because the world price of oil has risen 50 percent in the last year.

Americans spend $35M every hour at Wal-Mart.

[Gidan]

They better charge less then they do currently for computer components. Right now they are still over priced.

[Lyion]

They better charge less then they do currently for computer components. Right now they are still over priced.

Not for retail which is their competition.

Also, right now Wal Mart seems somewhat half hearted regarding pooters. I'm curious if this will go anywhere, or if its more political cannon fire.

[Gidan]

Compared to Frys which of late is the only place retail I buy computer components, they are expensive. Granted Frys actually has really good prices. Though compared to places like Best Buy that actually raises prices considerably, I guess they are cheap.

[Narrock]

Fry's sucks with prices. Yes, they're better than Wal-o Mart-o or Best Buy, but that's not saying much. Wal-o mart-o will need to drop their prices with computer components because there's too many Chinese-owned computer parts shops around town who will beat Wal Mart's prices. I usually buy all my stuff on Newegg, but when I need something fast, and now, I will go the local computer stores.

[10sun]

Am I the only person who sees Wal Mart and then thinks of Martrae?

[Narrock]

Oh God, my image of Martrae is shattered. I always pictured her as her Batgirl avatar!

[Trielelvan]

Fry's sucks with prices. *snip*

Fry's does price matching btw.
If you know it's cheaper somewhere else, tell a clerk and they will even call the store to verify it and match their price for you.

[Captain Insano]

I think it's called Fuse.

hahah I knew someone was going to say that. I have a feeling that my company won't be selling any products below 999 in cost. I am just not going after that whored-out cheapshit PC market. Dell, HP and Walmart can have it.

I'd rather be a smaller company that sells products that actually work.

[Narrock]

Fry's sucks with prices. *snip*

Fry's does price matching btw.
If you know it's cheaper somewhere else, tell a clerk and they will even call the store to verify it and match their price for you.

They will not match Newegg's prices. Only with other local retailers... not the online-only ones.

[Gidan]

That goes without saying, you pay for having the product instantly. If you can get a deal on shipping and dont need it instantly, online is usually a plus though if you need to return something their ad advantages to local stores.

[Narrock]

The Fry's here in Sacramento is absolutely gigantic, and it's a zoo on the weekends. It's like the size of 4 Best Buys put together. I hate that place.

[Gidan]

Same with the ones here. I dont mind because I avoid the sales people as much as possible as they tend not to have a clue. Makes me cringe every time I hear them give advice to customers that is flat out wrong. The selection is unbeatable in a local store though.

[DangerPaul]

wtf is Fry's?

[Gidan]

Their online store http://outpost.com/ will give you an idea of what they sell.

[Phlegm]

wtf is Fry's?

It's an electronic store chain. They sell everything electronics and a crap load of other stuffs.

[Darcler]

Gid likes buying something expensive, play with it, and return it within the week. He alone stolks up their open-box sales.

[Adivina]

YAY a bunch of fucking morons who have no business building their own computers in the first place are now going to think the can since Wal-Mart sells parts. Bet Wal-Mart could make a killing if they sold repair service, seeing as all the yokels are going to manage to fry their pc before they even build it.

[Harrison]

I'll apply there to be their salesman for the idiots...

[Jay]

Yeah, there's a lot of memory here, so you can put stuff in it.

[Harrison]

Yeah, there's a lot of memory here, so you can put stuff in it.