Dive Brief:
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Wal-Mart is now the largest retailer selling the Apple watch, joining Best Buy and Target as one of the few non-Apple retailers selling the gadget. T-Mobile and Sprint stores also sell versions of the Apple Watch.
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Wal-Mart for now is only selling the watch online, which meets its $50 free shipping minimum. Ship to store for pickup is also free.
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Apple may be attempting to clear out its Watch inventory to make room for its next-generation device, expected to be revealed in March, according to TechCrunch.
Dive Insight:
Selling the Apple Watch may be part of Wal-Mart’s stated efforts to attract growth from middle- and upper-middle income households. Beyond the Apple Watch, the retailer has already ramped up its grocery selection with more organic and upgraded offerings and has pushed for store improvements. The retailer isn’t discounting the watch as deeply as either Best Buy or Target, but volumes could be higher considering Wal-Mart’s size.
The move could also give Wal-Mart’s e-commerce sales a lift, something the retailer is aiming squarely to do.
Apple isn’t telling how many Watches it has sold through any channel, but it appears that its sales accounted for some $1.7 billion in fiscal 2015. TechCrunch notes that Asymco analyst Horace Dediu expects the company to have sold 21 million watches and as a result take in some $8.4 billion in revenue in the first 12 months since its launch.
Wal-Mart’s participation in those sales could bump that even higher.
