by Joseph P. Tartaro
Executive Editor
In what could be a bad new, good news story, Wal-Mart Stores Inc. has decided to stop selling guns in about a third of its US stores in what it calls a marketing decision based on a lack of demand in some places, a company spokeswoman said on Apr. 14, according to ABC News and Associated Press.
The world’s largest retailer decided to remove firearms from about 1,000 stores in favor of stocking other sporting goods, in line with a “Store of the Community” strategy for boosting sales by paying closer attention to local differences in demand.
“This decision is based on diminished customer relevancy and demand in these markets,” said Wal-Mart spokeswoman Jolanda Stewart, according to the news agencies.
Stewart declined to specify what stores were affected.
Wal-Mart, based in Bentonville, AR, has about 1,200 discount stores and 1,900 Supercenters, which include a full grocery section, in all 50 states. Wal-Mart has been selling rifles and shotguns, as well as ammunition, in most of its stores. In Alaska, Wal-Mart also sells handguns.
“As with all merchandise decisions that we make, our decision to remove guns from Wal-Mart locations is simply based on the lack of customer purchase history of firearms in a given community,” Stewart said.
The National Rifle Association (NRA) said it was concerned people in rural areas may no longer have access to guns, which could be bad news for some communities were access to retailers may be limited.
“We’ve been told by Wal-Mart that the decision would be made on a store-by-store basis based on demand. The NRA and our members will be watching closely to make sure they stay true to their word,” said Chris W. Cox, executive director of the NRA’s Institute for Legislative Action.
On the other hand, Wal-Mart’s decision may be good news for smaller gun shops which have often suffered in proximity with the retailing giant and the pressure of other large sporting goods chains which stock and sell firearms, ammunition and related accessories.
“While from a customer perspective we don’t like to see a reduction in the number of retail outlets for our industry’s products, the Wal-Mart decision to eliminate firearm sales in some locations may open the door for increased sales among independent retailers and outdoor ‘superstores,’ ” said Doug Painter, president of the National Shooting Sports Foundation (NSSF).
The firearms industry trade association’s Bullet Points newsletter noted that although Wal-Mart cited lack of demand in certain markets as the reason for its decision, recent nationwide data show that firearm and accessory sales remain strong. According to the latest statistics from the National Sporting Goods Association, US firearm sales increased by 9%, while hunting gear sales saw the fastest growth of all sporting goods categories, in 2004.
Based on the buying activity reported to Gun Week by most exhibitors at the February Shooting, Hunting and Outdoor Trade (SHOT) Show in Las Vegas, the rest of the retail firearms industry seems to be significantly more upbeat than Wal-Mart, which also appears to be modifying its image with trial upscale stores in selected markets.