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Wal-Mart isn't an underdog in many categories, but in electronics, it's far from being the category leader. Best Buy, whose revenues in 2009 totaled $45 billion, is the largest seller of consumer electronics. Wal-Mart beefing up its gadget offerings is likely part of an effort to play a little catch-up with Best Buy. In 2009, Wal-Mart's electronics sales were $33 billion, or 13 percent of its $258 billion overall revenue.

Wal-Mart, of course, has plenty of things going for it that Best Buy doesn't. Its reach is extensive, and when the recession hit, Wal-Mart was able to take advantage of many people's freshly discovered frugality. Another thing that happened is technology has become essential to a lot of daily activities. As things like computers and TVs become must-haves for all demographics and not just the geeky early-adopter set, Wal-Mart is well-positioned to make even more sales of gadgets.

 

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