New Competitor: Your local WalMart

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Wal-Mart Stores Inc. began dabbling in computer repair this month by leasing store space to break-fix shop Computer Doctor Franchise Systems.

Computer Doctor, Aberdeen, S.C,, will provide basic computer repair services for Wal-Mart customers out of 10 of the retail giant's supercenters. The first location opened in Ankeny, Iowa, this month; the other nine repair sites will open over the next 18 months.

Wal-Mart initiated the deal with Computer Doctor last February as a way to augment computer sales and enter the computer service arena, said Lonnie Helgerson, founder of Computer Doctor.

An average of 250 Wal-Mart customers a day are walking through Computer Doctor's repair shop since the first location was opened on Sept. 15, said Helgerson.

The sites will provide break-fix and warranty services, install components and even resell new and used computers and related hardware including printers, cables and notebooks.

Wal-Mart is testing out different business endeavors in the front of its stores, such as in the case of Computer Doctor. Other endeavors include coffee and bath-and-body storefronts.

Wal-Mart is not the only retail giant looking to step into the break-fix arena. Office Depot (NYSE:ODP) also approached Computer Doctor to provide services out of up to 50 of its locations, but the deal never came to fruition, said Helgerson.

"This is definitely a sign that on the consumer side, hardware repair and related services are in high demand, "said Helgerson.

Wal-Mart sells computers out of 1,400 of its locations. The new computer repair storefronts are a "test" of new ways Wal-Mart can better serve the needs of its customers, said a company spokeswoman.

Source: http://www.crn.com/it-channel/18832459;jsessionid=J1AYA2KFK3HXZQE1GHPCKH4ATMY32JVN

Lets Discuss.
 
This story is dated back to Mon. Sep. 20, 1999

This is an old article but is a market that Wal Mart is serrious about. As I understandthings they have considered sevearl business models. One is to have the service shop setup much like they have the banks, sandwhich shops and other vendors pay rent and other fees much like what occurs in a shopping mall. The other way would be to operate the pc repair shop as a brand of Wal-Mart.

This will probably some about but... the numbers about 250 walking through the PC reapir shop really don't tell us anything about how much business is being genereated. Regardless they will take market share but... First and foremost I believe that Geek Squad would be the first and biggest hit.

As a side note... Wal-Mart does not have the sales staff to drive revenue to the computer repair shop in the same manner that Best Buy does with their Geek Squad. So they will rely on customers to get used to taking their computer to Wal-Mart repair.

How to compete....
Onsite Service
Ease of access to your shop
Local Professional not a big chain
Customer service
Provide additional vale to your clients.

Overall this is something to keep an eye on.
 
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