NPD: Best Buy, Wal-Mart Capture Bulk of Circuit City Market Share12 Apr, 2010 By: Erik Gruenwedel
The shuttering last year of consumer electronics retailer Circuit City paved the way for Best Buy Co. and retail behemoth Wal-Mart to capture two-thirds of the former No. 2 CE retailer’s total dollar share, according to a new report.
Port Washington, N.Y.-based NPD Group said Best Buy’s dollar share in flat-panel TVs increased by more than five points, including positioning the No. 1 CE retailer as a retail leader for televisions priced above $1,000.
Flat-panel TV sales rated Wal-Mart’s best performing category in overall share gains among the top categories after Circuit City left the market in March 2009.
Specifically, Best Buy increased its retail dollar share in flat-panel TVs 5.2%, compared with 3.2% for Wal-Mart. The retailer also increased market share in notebook PCs by 5.5% (Wal-Mart 2.3%), 4.7% for desktop PCs (0.3%) and 5.5% (2.7%) for digital cameras.
“As its nearest competitor, both in store locations and in consumer perception, Best Buy was certain to be the big beneficiary from Circuit City's closure,” said Stephen Baker, VP of industry analysis at NPD. “However, with the closures coming at the same time as an economic recession, tumbling [average sales prices] in both PCs and TVs, and Wal-Mart's renewed focus on consumer technology as a growth opportunity, it is not surprising that Wal-Mart also managed to grow its share during this period.”