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May 07, 2012

Walmart, Target Add Apple Devices, Increase Customer Traffic

By Rory Lidstone, TMCnet Contributing Writer

Retail giants Walmart and Target have announced they will soon expand their electronics lineup with Apple (News - Alert) products.

Customers will theoretically stop to purchase some of the most popular electronic devices around – the iPod, iPhone and iPad – and stay a while to browse other sections.

The retail rivals both launched test programs back in April; Walmart added an “Apple Shop” to a single store near its headquarters in Bentonville, Arkansas, and now plans to add this new section to 24 more locations.

Target (News - Alert) has expanded its electronics line to include Apple products in 20 locations in both Minnesota and California.

Both Walmart and Target have been experiencing slow same-store sales growth of late and the two companies think that tapping into Apple’s popularity will help with this. The deal also helps Apple, of course, as the company’s devices will be available in new places, particularly rural areas, which may not have had easy access to iPods and iPads up until now.

Walmart’s “store-within-a-store” approach will naturally feature Apple’s big three i-devices, with plans to include accessories in the future, including covers and cases for iPads, as well as cases for iPhones and iPods.

The retail giant is also going to add cases for non-Apple tablets, as well as headphones and earphones from the popular Beats headphone line.

Target, on the other hand, involves a broader selection of Apple products which includes Apple TV, Time Capsule external storage devices and the Magic Trackpad, an alternative for computer mice. Locations will also be modified to feature a large display area which will allow customers to interact with Apple products directly.

Neither Walmart nor Target will sell Apple desktops or laptops.

Given Apple’s huge fan base and strong sales, Walmart and Target are making a practically risk-free move. "Any retailer that can increase their Apple offerings has a great opportunity to improve their sales, and more importantly, increase their customer traffic, so you get a double win," said Craig Rowley, VP of retail consulting at the Hay Group.




Edited by Braden Becker
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