Walmart expands, revamps electronics department

Starting this week, shoppers will notice new color-coded signage and brand logos in categories such as gaming, wireless, and home office; more Blu-ray players and movies; and a wider selection of high-definition television sets, especially 1080p models, along with a dedicated area to sample the HD experience.

In addition, Walmart is beefing up its cell phone and smart phone offerings by 30 percent, and adding more wireless service plan options as well. Each store will also feature an open, interactive display center where customers can try out and compare notebook computers as well as a  station where new technologies, products, and video games will be showcased.

Walmart plans on broadening its mix of electronics accessories, too, for instance, noise-canceling headphones, earbuds, and trendy Body Glove protective cases for touch-screen devices like the iPhone.

 "We know customers really value our ability to bring them the brands they trust, the right level of assortment, and the most affordable prices," said Gary Severson, Walmart's senior vice president for home entertainment. "We want to continue to keep them engaged and inspired, making selection easier, and introducing more technologies that add comfort, fun and quality of life, for themselves and their families."

When asked if the bankruptcy of Circuit City -- at the time of its demise the nation's second-largest electronics retailer behind Best Buy – had anything to do with the chain's new look and product lineup, Walmart spokeswoman Melissa O'Brien dismissed any correlation. She said various store departments get an annual makeover.

Still, she readily acknowledged that the downfall of Circuit City has presented Walmart with a golden opportunity to "wow" the defunct chain's former customers and others who haven't shopped at Walmart for a while. 

Indeed. Walmart is a much different electronics' retailer than it was only a few years ago. The chain has expanded beyond budget and value brands to include nameplates with plenty of cache like Sony, Dell, HP, Toshiba, and Apple (iPods and iPhones). The company has also added new lines like Samsung and Vizio television sets.

The chain says it will be the first retailer in the country to offer for sale Dell's new Studio One 19 All-in-One touch screen desktop computer. It's due out in June, and Walmart claims the company will have exclusive distribution rights for an unspecified period. 

As part of the relaunch, Walmart announced some new products, features, and promotions shoppers can look forward to in the next week or so:

• A Philips Blu-ray Disc Player on sale for $198

• An expanded selection of new Samsung, Sony, and Vizio TVs, ranging in size from 46  to 52 inches

• A wide assortment in colorful 11-inch Acer netbooks, at $298

• Sony's E-Reader portable E-Book

• More stores will carry more cell phones including the Blackberry Bold (AT&T) and Samsung Instinct s30 (Sprint), and BlackBerry Storm (Verizon). Once available, they'll also be carrying the sure-to-be-in-hot-demand Palm Pre (Sprint)

How does Walmart rate as an electronics retailer? In our most recent study, not so well. Our survey respondents placed them at the bottom of the rankings. We'll have to see whether the new Walmart does better than the old.