Boston, MA, 03/21/2014 – In a not so unique strategy to increase sales at its stores, Wal-Mart Stores, Inc. (NYSE:WMT) has announced that customers can trade in video games in exchange for store credits which they can use to buy anything at Wal-Mart and also at Sam’s Club stores .Wal-Mart will refurbish the games that are brought in and will then sell them later at its stores. The strategy is not unique to WMT and has previously been launched by Game Stop the video game and entertainment software retailer .Wal-Mart has confirmed that Gaming has been an important business for it and the move is seen as something to disrupt the existing game ownership set up so that Wal-Mart Stores, Inc. (NYSE:WMT) can push its products there at a later time.
As expected the shares of Games Stop plunged after Wal-Mart’s announcement and some experts feel that the strategy might be aimed to put the competitor out of business.
Wal-mart and Gaming business
This is Wal-Mart Stores, Inc. (NYSE:WMT)’s second attempt to enter the Gaming market after 2009. WMT had earlier introduced kiosks that customers could trade in for their existing video games.
The trade in program is expected to kick off on March 26th and later in the year customers will be able to buy the refurbished video games from Wal-Mart.
The future for Wal-Mart
The strategy seems to have hurt Game stop more than it has helped the retailing giant to gain points in the market. Often gamers do trade in old games for new but whether diehard gamers would love to trade in their beloved games in exchange for Wal-Mart’s credit to buy clothes and other stuff is something that waits to be seen.
Wal-Mart Stores, Inc. (NYSE:WMT) has found it difficult to stay alive amidst curbed spending by shoppers weighed down by increased taxes.