WAL-MART WOOS Laptop shoppers

San Francisco
Business Standard
Wal-Mart Stores Inc has expanded its laptop selection by 40 percent and will be aggressive in pricing the computers and the accessories to go with them as the discount retailer looks to win sales from frugal back-to-school shoppers.

Starting this Sunday, WalMart will begin selling an exclusive Compaq Presario notebook computer that it developed in partnership with Hewlett-Packard Co for $298. A similar unit currently sells at Wal-Mart for $548. “We think that that’s a screaming value,” said Gary Severson, Wal-Mart US’s senior vice president of home entertainment, in an interview. “You’re going to see us focus dramatically not only on price, but the value for that price.” The Presario notebook will be selling at a price that would normally purchase a less-capable netbook laptop.

Retailers have started the back-to-school shopping season on shaky ground as consumers show an unwillingness to spend on anything but basic goods. According to a National Retail Federation survey, the average family with children in kindergarten through 12th grade plans to spend 7.7 percent less on school gear this year than a year ago.

One bright spot in the survey was consumer electronics, where students plan to spend more. In addition, nearly 75 percent of respondents said they intend to shop at a discount store for their new school purchases.

Wal-Mart is looking at the back-to-school season as a chance to showcase its expanded selection of notebook and netbook computers, with Severson saying laptops are becoming astaple item for students of all ages.

“We think that this year is really the opportunity for us to establish in laptops,” Severson said.

To gain leadership, WalMart is following tactics it used to become a major player in flat screen TVs — expanding its selection of name brands while trying to beat the competition on price.

Wal-Mart has already started its back-to-school push in earnest and is offering Dell Inspiron laptops for $398 in colours ranging from pink to purple to aqua.

The retailer also stocked accessories to match the colorful laptops, like $60 Western Digital hard drives and $25 Logitech cordless optical mice in black, blue, pink and red.

Wal-Mart said the Dell offering was a popular one, and it expects a similar response for the Compaq Presario that goes on sale July 26.