Wal-Mart Cuts Down on DVD Displays

Posted Wed Oct 7, 2009 at 11:00 AM PDT by Mike Attebery

Wal-Mart is working on a new merchandising campaign that seems to involve a lot less room for DVD and Blu-ray.

In Wal-Mart’s most recent reimagining, known as “Project Impact”, the retail chain is working to eliminate clutter in the aisles and promotion of items that just don’t sell. One of the largest cutbacks announced will be the elimination of display cases and corrugated stands for DVDs and Blu-ray Discs.

Wal-Mart claims that they still see DVD sales as an important category, but J.P Morgan analyst Imran Khan states otherwise. “We think the new strategy implies Wal-Mart no longer sees DVDs and Blu-ray discs as traffic drivers” he contends.

Sure, it’s a bummer, but it’s just one company, right? Yes and no. While many consumers shop online, or in electronics stores like Best Buy, Wal-Mart accounts for around 30% of DVD retail sales in the US.

With the increasing popularity of digital distribution platforms like Netflix and the addition of Red Box rental kiosks at Wal-Mart stores across the country, it isn’t hard to see why DVD sales may no longer be of interest to the chain.

Source: Wall Street Journal

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Tags: Industry Trends, Wal-Mart (all tags)