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Electronics Mark Down at Wal-Mart

Key electronics have had a major markdown at Wal-Mart Stores, Inc. Nearly 100 electronics items, including plasma televisions, mobile phones, and digital cameras, have had their prices cut in order to get a jump on the holiday season. Because business has been down among its US stores, the world?s largest retailer cut prices on a selection of games and toys which helped boost its sales volume.

The latest markdowns include a US 500 dollar cut on a Panasonic 42-inch plasma television to US 1,294 dollars. Wal-Mart has rivals, however, when it comes it its electronics department. Best Buy Co. Inc. offered a similar Panasonic 42-inch plasma television for US 1,708.99 dollars on its Web site. Rival Circuit City Stores Inc. was down 1.4 percent at US 25.75 dollars on the NYSE, after hitting US 26.48 dollars earlier in the day. Best Buy?s stock was off more than 2 percent at US 51.88 dollars in midday trading on the New York Stock Exchange, after it traded as high as US 53.71 dollars earlier in the session.

After Wal-Mart?s announcement regarding price cuts for some of its electronic items, both stocks fell sharply. Business is not as usual for Wal-Mart Stores, Inc. The company posted disappointing October sales and forecast low November sales at US stores open at least a year. This is partly due to the poor demand for trendy apparel and disruption from store remodeling efforts. Lee Scott, CEO, told analysts that he was not satisfied with the company?s poor sales growth. However, he expected demand to improve during the holiday season.