Sunday, May 8, 2011

Wal-Mart shrinks electronics space, adds items

The words most famous chain of stores, Wal-Mart, had decided to give smaller space to its electronics department consider that recently the most popular gadgets are the ones which are the smallest. Alternately, it will be making more space for the unordinary items like fishing poles, fabric and full-figure fashions.
According to Rosalind Brewer, the president of Walmart East, he says that "It's still a vibrant category but much smaller items are being sold." He was addressing the audience at the ISI Retail Summit on Tuesday. Company representatives have claimed that Wal-Mart will probably end up selling almost the same amount of products regardless of this decision of reducing the physical space reserved for its electronics departments. It was also stated that the size of the electronics departments will vary store by store.
In the recent few years, Walmart has been constantly expanding more and more space for the entertainment department, for bulky items like flat-panel televisions. An analyst, David Strasser, calculates that if Wal-Mart let’s say reduces the space of like 2,000 square feet for every store than it will be "suggesting the company would effectively be eliminating 7.2 million (square feet)" in its electronics departments accumulatively.
Wal-Mart has been bringing back a number of new items in its stores of the U.S., in order to reverse its policies of 2008 when it decided to reduce the products which were not so popular and give large discounts on the consumers favored merchandises. But now as the economy has began to stabilize again after the recession, Wal-Mart is witnessing some higher income shoppers chose their competitors like Target Corp. Whereas, on the contrary elevated gasoline prices also convinces many shoppers for looking at ways to save money, which may benefit Wal-Mart.

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