Wal-Mart’s No. 1 In CE, For Some
Wal-Mart has finally achieved its goal of becoming the No. 1 destination for CE.
There is, however, a caveat: According to BIGresearch’s most recent Retail Ratings Report, covering the month of May, the discounter was only tops in electronics among households with incomes less than $50,000. Specifically, 28.7 percent of consumers in this income stratum who were surveyed cited Wally World as the go-to place for CE.
Best Buy came in second place for this segment, with a “consumer preference share” of 26.5 percent, down from 27 percent a year ago.
But the electronics chain, which has made a concerted effort through its customer centricity strategy to focus on its most profitable customers, still dominates the hearts and minds of most CE shoppers. According to the ratings report, Best Buy’s total preference share rose 4.2 points to 33.2 percent last month, outpacing all its rivals including Wal-Mart, which gained 3.9 points to 20.2 percent.
Trailing at a distant third was Amazon.com, up 1.3 points to 2.4 percent, while Sam’s Club was at the bottom of BIGresearch’s short list, with its preference share essentially flat at 1 percent.
The full list follows:
Consumer Preference Share: CE
*CEI measures growth in share of consumer preference year over year. An index of 100 is flat, while an index of 105 indicates 5 percent growth. Source: BIGresearch Retail Ratings Report, May ’09, based on survey of 8,000+ respondents |
Burale commented:
It’s all start with education, most consumer don’t know the different between qualities to cheap product, or simply don’t care. Knowledge and service you find at specialty store, not Wal Mart.
Tommy Gomez commented:
WALMART WILL CONTINUE TO DOMINATE UNTIL THE MAJOR BUYING GROUPS BEGIN FLEXING THEIR MARKETING MUSCLE WITH MANUFACTURES TO ALLOW MOM & POP STORES TO COMPETE. MON & POP STORES CREATES MORE NEW JOBS AND BETTER PRODUCT SATISFACTION FOR THEIR CUSTOMERS.
Alan B. commented:
The better retailers will always be able to compete against
Wal-Mart as long as they realize that price is only one factor in
the purchase decision. Sometimes it is the most important factor,
and in those cases Wal-Mart cannot be beat. But in many cases,
price takes a backseat to service, knowledge, attention, confidence
and relationship. It is for this reason that manufacturers and
retailers need to work together in creating channel strategy that
works for everyone. Wal-Mart is an unprofitable last resort for
manufacturers to spike their sales. Specialty retailers need to
support brands that don't go there.
Alan B. commented:
AlexAxe commented:
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nice day AlexAxe
AlexAxe commented:
Bill Matthies commented:
I think the day when we don't need to qualify that Wal-Mart is only
number 1 in in a demographic sub category is not far off. Get ready
to revise (create?) your channel strategy.
Bill Matthies commented:
