Walmart is increasingly eating into Best Buy’s core revenue streams according to analysts, and it is providing them with some worrying figures, especially in the television and computer markets.
The world’s largest retailer is increasingly making moves into Best Buy’s territory, such as the launch of its, albeit small, tech-support trial in its Dallas area stores, aimed at providing the retailer with a strong competitor to Geek Squad, as previously reported by PC Retail.
A sign of the impact Walmart is having on Best Buy is its share price. Despite announcing a major push into Europe and its continued dominance over rival Circuit City, shares in the retailer have dropped 25 per cent this year.
While some of the impact on its share price is down to worries about the economy, retail analyst at Bernstein Research, Colin McGranahan has said Best Buy’s impact should not be underestimated. Speaking to the Star and Tribune, he said: "A lot of the dears and concerns that are our there are already reflected in the stock price."