Poor people can thank wal-mart for their HDTV.

[MrAngryFace]

http://articles.moneycentral.msn.com/Investing/Extra/WalMartEffectStrikesAgain.aspx

Now, it is becoming apparent that Wal-Mart's calculated decision to break the $1,000 barrier for flat-panel TVs triggered a disastrous financial meltdown among some consumer-electronics retailers over the past four months.

The fallout is evident: After closing 70 stores in February, Circuit City Stores (CC, news, msgs) on March 28 laid off 3,400 employees and put its 800 Canadian stores on the block. Tweeter Home Entertainment Group (TWTR, news, msgs), a high-end home entertainment store, is shuttering 49 of its 153 stores and dismissed 650 workers. CompUSA is closing 126 of its 229 stores, and regional retailer Rex Stores (RSC, news, msgs) is boarding up dozens of outlets, as well as selling 94 of its 211 stores.

I feel sorry for the electronic retailers. The way Wal-Mart is monopolizing commercial america sector by sector is honestly a little scary because when you get down to it the types of products offered within a particular spectrum is actually pretttty narrow. This is of course good for technology, but bad for america's businesses.

[Flannel Boy]

Is Wal-Mart selling the tv's at a loss?

[Candyflip]

I'm not well read on all this HD stuff, but wasn't it pretty much agreed on that electronic retailers were way overcharging customers for HDTVs?  Excuse me if I'm entirely wrong. I'm not surprised a lot of people aren't willing to spend 1k+ on a damn TV for the sake of a slightly better picture.

[Tauntaun]

[MrAngryFace]

Mute/Malek: I actually know jack shit about HDTV manufacturing costs, I also assume this article is talking about LCD HDTVs which honestly have never been THAT cheap. The fact that these 'high prices' were upheld so long by every retail out there suggests that there wasn't any funny business going on. Retailers generally make like a few bucks off of electronics, instead making money off the various plans and accessories, so if there is any problem with high fixed prices it would be on the manufacturer's end I would THINK.

However this would suggesdt Wal-Mart is bending over and taking a 'loss' cause:

A.) They never sell plans anyway
B.) THEY HAVE TONS OF FUCKIN MONEY OMG

I kinda agree on your image quality comment. Im clearly not a videophile HOWEVER the colors of my LCD and the ability to play hi resolutioin games is REALLY a step up from anything I got from my EDTV previously. Widescreen is also very nice.

[HyperZoneWasAwesome]

and yet Wal-Mart still stocks way too many fullscreen DVD's.

I fuggin hate that company.

[MrAngryFace]

They're pretty backwards, and your comment reinforces my comment about the narrow selection. My mom lives in a town in Western Wa with an economy that Wal-Mart has utterly destroyed by building right at the enterance to town. Aberdeen WA is a tourist stop-off, and since Wal-Mart is stopping tourists right at the entrance, taking their money, and sending them on their way, all of the smaller business are DEAD. The mall in town was also crushed by Wal-Mart.

Now my mom complains that she can never find anything interesting to buy, that its all 'wal-mart stuff'. UNFORTUNATELY the Wal-Mart probably employs half of the town.

[MrAngryFace]

Ooh, follow-up story. I guess its the small off-brand manufacturers letting Wal-Mart get away with it.

http://tech.msn.com/products/articlecnet.aspx?cp-documentid=4768046&GT1=9332

Indeed, the prices of flat-panel TVs dropped dramatically last year, between 38 percent and 75 percent in a range of screen sizes, according to DisplaySearch. The rapid drop in prices alarmed many in the high-end TV business. Last fall, the price war among brands was like a "gunfight at the O.K. Corral," said Dave Workman of the marketing and merchandising firm PRO Group.

"What happened last fall was someone sent the sheriff on vacation, passed out pistols to everyone and said, 'Go have a blast,'" he said. "Retailers are often undisciplined when left to their own devices," he added, and major manufacturers such as Samsung, Sony, Panasonic, LG and Sharp were not strict enough with their minimum price requirements as they joined in on the discount binge.

Though unit sales of television are actually up due largely to the great deals, some brick-and-mortar retailers are hurting. Many of them are operating on, as Ross Young of DisplaySearch put it, "margins thinner than Nicole Ritchie."

Those low margins are wearing on national consumer electronics sellers such as Circuit City, CompUSA and Best Buy. Circuit City announced last month it would be closing 70 of its North American stores and would restructure the company due to price-margin pressure in the flat-panel television market in the third quarter. CompUSA is taking even more dramatic steps, announcing last week it would shutter half of its stores in the next two or three months.

Best Buy has weathered the storm better than most, said Matthew Fassler, managing director of Goldman Sachs. The nation's largest electronics retailer actually raised its operating margins to 5.6 percent in 2006 from 5.3 percent the previous year by pushing hard with a high-end specialty home theater section called Magnolia, Fassler said. (Circuit City's operating margin, by comparison, dropped from 1.9 percent to 1.2 percent.)

But other specialty home theater retailers aren't having quite as easy a time of it. At Ken Crane's, the January average selling prices were "the lowest in years," Colky said. Unit sales are way up, but executives at the retailer worry they're carrying too many brands, he said. "I'd rather have two Samsungs and two Sonys" than a variety of no-names because of the promise of a better return on shelf-space, he said.

That's not to say the Sonys and Panasonics of the world are getting shoved aside. Amazon reports that the top sellers are still the premium brands, and not, in fact, Vizio. Of the more than 1,000 television sets it offers for sale, Amazon's top sellers Tuesday were, in descending order, Samsung, Panasonic, Sony and Mitsubishi.

[Saint Cornelius]

As much as I hate Wal-Mart, I hate big box electronic retailers even MORE. Good riddance.

[HyperZoneWasAwesome]

when everybody else is on the precipice, Wal-Mart's aggressive "I'm slashing prices because I'm the only one who can afford to" strategy becomes even more predatory.

As much as I hate Wal-Mart, I hate big box electronic retailers even MORE. Good riddance.

the lesser of two evils is still less evil.

[MrAngryFace]

Eh, this is actually kinda bad for the tech industry as a whole. The bigger picture is that these out of nowhere off-brand manufacturers are working for short-term gains without focusing on actually controlling the progress of the market/technology. With Wal-Marts obvious help in this area the manufacturers that are RESPONSIBLE for SUSTAINING the industry are suffering, as is HEALTHY Competition against Wal-Mart which is the closest thing to a Monopoly in the United States these days.

Sure, short term people get great prices on high quality TVs, but the effects of these are going to be felt for a while in allll sorts of ways.

[Himu]

THIS BETTER NOT EFFECT BEST BUY

[Saint Cornelius]

the lesser of two evils is still less evil.

i won't argue that. but i feel just as skeevy walking out of, say, a CompUSA where I just got shook down for an extended warranty on the ipod CASE i just bought than I would walking out of a Wal-Mart with items priced so low they're INSANE.

Eh, this is actually kinda bad for the tech industry as a whole. The bigger picture is that these out of nowhere off-brand manufacturers are working for short-term gains without focusing on actually controlling the progress of the market/technology. With Wal-Marts obvious help in this area the manufacturers that are RESPONSIBLE for SUSTAINING the industry are suffering, as is HEALTHY Competition against Wal-Mart which is the closest thing to a Monopoly in the United States these days.

There was an article somewhere about the big boys of TV getting pissed at LG for making lower-priced HDTVs... the big boys thought that they could get away with a premium price for the TVs for a few years, and people would snatch them up - but then LG started selling them without the high overhead and that - along with Wal-Mart - is where the HDTV biz is today.

It's greed on everyone's part. The consumer shouldn't be reprimanded for trying to get a good deal.

[Himu]

They're pretty backwards, and your comment reinforces my comment about the narrow selection. My mom lives in a town in Western Wa with an economy that Wal-Mart has utterly destroyed by building right at the enterance to town. Aberdeen WA is a tourist stop-off, and since Wal-Mart is stopping tourists right at the entrance, taking their money, and sending them on their way, all of the smaller business are DEAD. The mall in town was also crushed by Wal-Mart.

Now my mom complains that she can never find anything interesting to buy, that its all 'wal-mart stuff'. UNFORTUNATELY the Wal-Mart probably employs half of the town.

God fucking DAMN. They must be stopped!

[MrAngryFace]

Im mostly concerned that the off-brand manufacturers are working for short-term gains only. Off-brand groups tend to lack longevity and as a result dont actually PLAN for a healthy market beyond their existence. Even IF Samsung and Sony can be considered evil, they at least take this into consideration. Im less concerned with LG than the other brands ive never heard of that change every year. LG is established at this point.

Regardless, I agree that this isn't the consumers fault, we go where the prices are. I dont blame someone for trying to save money, in fact I urge people to buy samsungs and sony tvs right now

[Saint Cornelius]

Yeah but what off-brand manufacturers are you talking about?

spoiler (click to show/hide)

please say Emprex.

[close]

[Tauntaun]

They're pretty backwards, and your comment reinforces my comment about the narrow selection. My mom lives in a town in Western Wa with an economy that Wal-Mart has utterly destroyed by building right at the enterance to town. Aberdeen WA is a tourist stop-off, and since Wal-Mart is stopping tourists right at the entrance, taking their money, and sending them on their way, all of the smaller business are DEAD. The mall in town was also crushed by Wal-Mart.

Now my mom complains that she can never find anything interesting to buy, that its all 'wal-mart stuff'. UNFORTUNATELY the Wal-Mart probably employs half of the town.

God fucking DAMN. They must be stopped!

we must burn the Walmart!

[Flannel Boy]

With a machine gun and our firsts?

[Tauntaun]

With a machine gun and our firsts?

YEEEEEEEEEEEEEEEESSSSSSSSSSSSSSSSSSSSSSS!!  FREEEEEEEEEEEEEEEEEEEEEEEEEEEEDOOOOOOOOOOMMMMMMMMMMMMMM!!!!

[MrAngryFace]

wtf is Video Only?

[Melissa]

I feel sorry for the electronic retailers. The way Wal-Mart is monopolizing commercial america sector by sector is honestly a little scary because when you get down to it the types of products offered within a particular spectrum is actually pretttty narrow. This is of course good for technology, but bad for america's businesses.

Good topic!  You should Netflix this.  It digs pretty deep into this.



Is Wal-Mart Good for America?: Frontline
http://www.netflix.com/Movie/Is_Wal-Mart_Good_for_America_Frontline/70037347

Is one of America's biggest corporations actually ruining the economy? Marching across the nation, the big-box chain brings jobs and much-needed retail options to many towns. But, as a major purveyor of goods, the company's also hacked away at manufacturing jobs stateside, since the bulk of its products are made in China. Here, "Frontline" examines two cities profoundly affected by the Wal-Mart movement.

[MrAngryFace]

Ill netflix it, thanks. Tho I come from a town that is a great example of the truth

Its funny the city I live in right now won't let them in, so they built on the border of a city near us that did let us in. So aggrivating. Luckily its far removed from the smaller business centers.

[Mr. Gundam]

They're pretty backwards, and your comment reinforces my comment about the narrow selection. My mom lives in a town in Western Wa with an economy that Wal-Mart has utterly destroyed by building right at the enterance to town. Aberdeen WA is a tourist stop-off, and since Wal-Mart is stopping tourists right at the entrance, taking their money, and sending them on their way, all of the smaller business are DEAD. The mall in town was also crushed by Wal-Mart.

Now my mom complains that she can never find anything interesting to buy, that its all 'wal-mart stuff'. UNFORTUNATELY the Wal-Mart probably employs half of the town.

You're right, the Aberdeen Wal-Mart is a great example of the negaitve effects that it can have on a small town. There wasn't a whole lot in Aberdeen when the Wal-Mart was first built, but the downtown area and the mall were somewhat the thriving. Now, you've got some chain stores that have built up around the Wal-Mart, while the rest of town is dead. The mall in Aberdeen is absolutely sad. We have a cabin out near West Port/North Cove, and we'll sometimes go to a movie at the mall. I have no idea how any of the stores that are still there stay in business.

If they ever tried to build a Wal-Mart in Seattle city limits, you can bet people would burn it down.

wtf is Video Only?

Local (I think, at least) chain that deals exclusively in televisions and other video devices. They've been around for a long time and advertise a lot on the radio. They have GREAT prices.

[MrAngryFace]

Whats horrible is as more stores move out of that mall the higher the rent gets for stores that stay. I think Sears is still around cause of all the old people still in Aberdeen.

Now when I visit my mom in aberdeen I just bring a bunch of dvds and stuff cause there's jack shit to do in aberdeen. Of course the capitalist in me still appreciates the town finally getting a starbucks

[MrAngryFace]

wtf is Video Only?

Local (I think, at least) chain that deals exclusively in televisions and other video devices. They've been around for a long time and advertise a lot on the radio. They have GREAT prices.

Local as in WA? Ill have to look into it.

[Mr. Gundam]

Whats horrible is as more stores move out of that mall the higher the rent gets for stores that stay. I think Sears is still around cause of all the old people still in Aberdeen.

Now when I visit my mom in aberdeen I just bring a bunch of dvds and stuff cause there's jack shit to do in aberdeen. Of course the capitalist in me still appreciates the town finally getting a starbucks

The mall used to have an EB Games, and there was even an independent game store in town, but they've both been run out of business. Now all the poor kids in Aberdeen can only buy games at the Wal-Mart. Hell, I don't think there's anywhere else in town to buy movies, music or books. I think the FYE and the Waldenbooks at the mall have gone out of business, too. Driving to Olympia used to be a valid alternative, but with the increase gas prices, not so much anymore.

Yep, Video Only is a Seattle-area store. There's one right by the Costco in Federal Way.

[Van Cruncheon]

there's a Video Only in Lynnwood not too far from the mall. it looks a little ghetto, but they have great prices on mid-to-high end video kit.

[Beezy]

Meh. No Walmarts in NYC.

[MrAngryFace]

Yeah I remember the Indie Gamestore that was in-town there, I bought a couple games there once and sold off some stuff.

Whats dumb about the EB leaving the mall was they were making A LOT of money. The manager there talked biz with me a lot and he said the rent was just THAT high. He ended up managing the FYE for a short time but I dunno what happened to him.

My mom always complains about having to go out of town to christmas shop for me haha.

[Flannel Boy]

They seem to have like half a dozen Wal Marts around Mississauga. Hell, their Canadian head office is in Mississauga.

[Mupepe]

I fucking hate Circuit City   They overcharge like motherfuckers
I fucking Tweeter   They overcharge like motherfuckers
CompUSA isn't that bad, they usually have good deals in my area, so I do kinda feel bad for them.
I don't know the Rex store or whatever

Anyways, yeah, Wal Mart's narrow selection of electronics is fucking frightening if it means it's going to be the future.  They stock the lowest quality shit.  It's disgusting.  I go there for 5.50, 9.44 and 13.69 movies though.

[MrAngryFace]

Regardless of how you feel about pricing, the stores are not dying because they charge too much, they're dying because the competition of wal-mart is getting beat the fuck up by strong arm tactics and throw away off-brands suiciding with impossible-to-maintain low low prices.

Im all for a store going under cause they didnt have the sense to keep prices competitive, but come on.

[Mupepe]

I didn't say they're dying because of overpricing.  And I even pointed out the shitty selection/quality at Wal Mart.  I just don't like them.  I do feel bad for my CompUSA

I went to Circuit City this morning to buy a Sirius prepaid card before work so I could listen to mah satellite radio.  Their sign outside says they open at 9.  It's 9:45 and their door is locked, I get soaking wet because it's raining cats and balls. 

[Phoenix Dark]

Ha rich people offended that poor people can now join the HDTV gang. If Walmart sold $3 crates of scotch no one would be complaining!

[Mupepe]

IT WAS RAINING CATS AND BALLS

[Mr. Gundam]

I have no problem with higher HDTV market penetration.

I just hate Wal-Mart.

[bluemax]

The best place to buy a tv is a place like "Video Only," it's cheaper too.

Video Only is such a fucking elitist store that I would never fucking go in one again.

I went in once to ask for something and they told me they weren't Radio Shack in about the snootiest fucking way possible. Fuck them up their snooty asses.

[MrAngryFace]

3 Dollar Crates of Scotch isn't good Scotch.

What you get at Wal-Mart for cheap isnt QUALITY which is why you end up buying replacements at Wal-Mart.

[Mupepe]

3 Dollar Crates of Scotch isn't good Scotch.

What you get at Wal-Mart for cheap isnt QUALITY which is why you end up buying replacements at Wal-Mart.

RAINING CATS AND BALLS

[MrAngryFace]

CATS N BALLS

[brawndolicious]

http://movies.eyebum.com/parts.php?id=543

That's the documentary Wal-Mart: The High Cost of Low Prices and it will disturb you.  I know they paid their employees scraps but they actually told their employees that couldn't afford healthcare to go on welfare, use the government to provide your healthcare from a company in a supposedly capitalist country is one of the most horrible things I have heard in my life.  They make a pipeline for china, they don't have to make their own markets, maybe they gave a little incentive to the government to have imports from china have a %2.5 tax and exports to china have a %25 tax?  They also severely under-staff their stores.  I've heard of this in other big businesses about hating unions of course but I've never heard of having special teams that set up a bunch of security cameras and wait in the parking lot in a van when there's a rumor of having a union in a store, that's a bit new to my mind.  There's a lot I didn't remember but I highly recommend watching the documentary.

[Scurvy Stan]

Walmart fallapart!

[Candyflip]

http://movies.eyebum.com/parts.php?id=543

That's the documentary Wal-Mart: The High Cost of Low Prices and it will disturb you.  I know they paid their employees scraps but they actually told their employees that couldn't afford healthcare to go on welfare, use the government to provide your healthcare from a company in a supposedly capitalist country is one of the most horrible things I have heard in my life.  They make a pipeline for china, they don't have to make their own markets, maybe they gave a little incentive to the government to have imports from china have a %2.5 tax and exports to china have a %25 tax?  They also severely under-staff their stores.  I've heard of this in other big businesses about hating unions of course but I've never heard of having special teams that set up a bunch of security cameras and wait in the parking lot in a van when there's a rumor of having a union in a store, that's a bit new to my mind.  There's a lot I didn't remember but I highly recommend watching the documentary.

I would care more if people didn't try to make a career out of working at Wal-Mart. In my eyes that's the equivalent of working a 40 hour for the rest of your life at McDonald's.

Some of you guys sound like you have shitty Wal-Marts. The Super Wal-Mart down the street has a ridiculous selection of whatever the hell it is you want. It's like Sam's Club combined with Target and Best Buy. Still, it is disturbing seeing the effect they have on pretty much all other retail stores. Wal-Mart: Destroying the middle class one retail chain at a time.

[brawndolicious]

some people have to work there because they either couldn't go to school or they have a family and don't have the time to go to school, and considering wal-mart may be the only store in a lot of towns that's a lot of people.

When you read about one big business fucking people in every way than you start looking at what stores and companies you buy things from.

[MrAngryFace]

In cases like Aberdeen WA, its the ONLY place to work.

[Mupepe]

As soon as Best Buy and Circuit City etc. stop selling 10 year old movies for 20 dollars, I'll start buying DVD's from there again.

[MrAngryFace]

Best Buy movie prices are fine, and their CD prices are half the reason CDs are so cheap EVERYWHERE now. They got into a scuffle with the recording industry over that a while back.

Granted you CAN find a few older movies still at 20 dollars, but they have A LOT of movies. If you want to complain about over pricing assault a store that deserves it, like FYE which marks up movie prices up to 15 dollars.

As for Circuit City, im not sure where they make their money, I have a credit line there and I havent found anything there worth buying in 3 years.

[Mupepe]

my best buy has some crap selection.  their cd prices do rock though.

i don't think circuit city makes money

and I haven't been to an FYE in years.  I don't think they have them anymore in Houston.  But yeah, that shit was atrocious.  I remember paying 22, 23 dollars on a cd

[MrAngryFace]

Whats weird is CD Warehouse is either an affliate or was bought out by FYE but their prices are WAY better and they carry a much better selection. Im not sure what FYE is supposed to be.