Ten days ago, Wal-Mart announced that it was expanding its consumer electronics departments in its stores and would increase its selection of high definition televisions, home theater systems and digital cameras. Now, it also appears as though the company is intent on upping its profile in personal computers with the addition of two Dell Dimension desktop systems, priced below $700, to its selection.
When Wal-Mart initially announced changes to its consumer electronics department, Kevin O'Connor, vice president and general merchandise manager for consumer electronics, said, "Consumers are more technology driven today than ever before and are searching for the right price and products to quickly meet their needs."
Gary Severson, senior vice president of Home Entertainment, Wal-Mart, said of the deal with Dell, "Our customers trust in Wal-Mart and Sam's Club to provide the most convenience and best value on today's top products and services. Dell is a proven electronics brand and adds a new complement to our other high quality desktop selections, and we're very excited to now bring our customers new access to a product they want, with the ability to purchase a Dell right away."
It's not clear despite the announcement that Dell and Wal-Mart are in it together for the long haul. Dell has built its business selling directly to consumers.
Steve Baker, NPD Techworld's director of industry analysis, told PC Magazine, "It's absolutely a limited trial. Dell is a smart company moving into selling to third parties... I think everyone's waiting to see what happens. Dell hasn't sold to the typical customer that goes to a Wal-Mart."
Discussion Questions: What is your take on Wal-Mart's expansion of its consumer electronics department and its deal with Dell? What will Wal-Mart's latest moves mean for the competition?