Big-box retailer Wal-Mart plans to begin offering custom-configured computers from more than one-third of its U.S. retail locations this month, as it expands an apparently-successful pilot program.
Wal-Mart begain testing a build-your-own-computer program in about 20 retail locations in 2005, and is now expanding the program to 1,200 of its 3,200 locations in the United States, with 1,400 stores expected to offer the service by the end of 2006.
Wal-Mart currently offers pre-configured computers and accessory bundles at most of its retail locations, but, despite some holiday-tied retail rushes, generally hasn’t made much money selling computers. Analysts don’t see Wal-Mart’s move as any significant threat to direct marketers like Dell, which has been in the made-to-order computer business for years and has long-established ties to corporate buyers. Conversely, Wal-Mart won’t be able to offer shoppers as wide a selection of options as Dell and other traditional computer retailers, and will have to make its money purely by cost cutting rather than by offering superior systems.
Wal-Mart customers will be able to select specific components of some computer systems available through Wal-Mart, including specific CPU units, memory, on-board storage, and optical drives. Wal-Mart will also enable customers to customize their selections with a variety of accessories such as monitors, keyboards, and mice.
But hey, where else can you pick up a XP Home system and a couple bags of pig ears?
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