Sam’s Club Adds Tech Support As Wal-Mart Ends Dell Program
September 23 2009 - 2:02PM
Dow Jones News
Wal-Mart Stores Inc.'s (WMT) Sam's Club warehouse division has
added support services for consumer electronics, as parent company
Wal-Mart considers its next step after ending its own pilot program
with Dell Inc. (DELL).
Sam's Club said Wednesday it is making permanent a test effort
it was running for the last year to provide free technical support
for electronic products its customers buy and will also offer home
delivery and installations for a fee.
The program is being offered in Sam's Club's 600 warehouse
stores nationwide on all electronic merchandise, including Apple
Inc.'s (AAPL) iPods, Dell personal computers and Sony Corp. (SNE)
high-definition televisions. Sam's Club is using a third-party
firm, which it declined to name, to provide the support services.
Sam's Club is also requiring vendors to supply its service
providers with information about their products so they can better
assist customers.
Sam's Club is sharing what it learns through the program with
Wal-Mart Stores' merchandising team, although, "No decision has
been made about how [the program] might be applicable to Wal-Mart,"
said Sam's Club spokeswoman Susan Koehler.
Wal-Mart has been stepping up its consumer electronics business
to add more brand names, staff and highlight the locations in its
stores, making the revamped departments more user friendly. Right
now, Wal-Mart does not offer delivery or installation for
electronics products.
The company also, this summer, began quietly ending a pilot it
started with Dell in July 2008 to market tech support services
through kiosks at about a dozen Dallas-area Wal-Mart stores.
The companies "determined it was not the right solution for our
business models and goals in this area," said Wal-Mart spokesman
Melissa O'Brien.
"There are no new plans we have to share at this time" about
what Wal-Mart's next step may be, O'Brien said.
The Sam's Club rollout may be a prelude to Wal-Mart launching
similar services on a permanent basis, said Stacey Widlitz, retail
analyst at Pali Research.
Many consumer electronics retailers have taken the path to offer
greater value to their customers. Best Buy Inc. (BBY) is a pioneer
in the area with its "Geek Squad."
The Sam’s Club announcement may be troubling for Best Buy,
Widlitz said. "Much of Best Buy's competitive advantage has been in
its level of customer service relative to its competitors."
With discounters such as Sam’s Club and potentially Wal-Mart
"getting into the consumer electronics service game, I believe that
the gap between Best Buy and its competitors may be beginning to
close," Widlitz said.
Best Buy representatives weren't immediately available for
comment.
Wal-Mart shares were up 4 cents at $51.04. Best Buy's were up
1.2% to $38.82.
-By Karen Talley, Dow Jones Newswires; 212-416-2196;
karen.talley@dowjones.com