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Wal-Mart Enters Computer Services Market

By Christina Torode, CRN
September 20, 1999    5:29 PM ET

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 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.


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