Walmart Expands Used Goods Business

The largest American retailer Walmart Inc. (WMT), is launching a new program under which it will sell used household appliances and electronics that can be a good alternative for the price-sensitive customers of the store chain. Walmart recently launched the Walmart Restored program as part of its website. As part of the new initiative, buyers purchase electronics and household appliances previously used but have undergone thorough repair and restoration. 

Such products have been tested and cleaned. They almost do not differ from new ones and also have a 90-day warranty with the possibility of a free return. So far, Walmart Restored products are available only on the company’s website, but in the fall, it to open such departments in some stores of the chain. Apple, HP, KitchenAid, and Samsung are some of the brands that are part of the program. Most likely, the retailer expects the beginning of the school season to create an increased demand for appliances and electronics, as many parents will want to buy laptops, tablets, and other mobile devices for their children. 

In the short term, the Walmart Restored program will unlikely allow the retailer to increase profits quickly. However, the appearance of restored equipment in the company’s online store may provoke more significant activity of buyers in other product categories. Now large stocks are a severe problem for Walmart. The management recently noted that stores must sell a “full boat of goods” at discounted prices to clear inventory. 

The first time Walmart has experimented with reselling goods. A few years ago, the retailer entered into a partnership agreement with goTRG to sell refurbished Apple products on its website. It is worth noting that used goods are in demand. Due to high-quality repairs and restoration, as well as the guarantee provided, confidence in such goods has grown. Adding used goods is a natural step for Walmart, which has always focused on the price-sensitive consumer.