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Walmart Getting Serious About Tools in 2026?

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four.cycle

Well-known member
Joined
Oct 19, 2015
Messages
28,953
Location
Tacoma, Washington
Tools probably make up an infinitesimally small amount of Walmarts profits
More to the point:
Hand tools were always one of the lower margin items sold in a retail setting.
Traditionally, that's the way the pricing was structured:
Hand tools = you were lucky to clear a 40% net margin
Air freshners, car wax, chrome widgets = 70% - 80%
It's still that way, just not set up the same as far as distribution levels.
Not as much money to be made on tools as on laundry detergent, diapers, and coffee pots.
Retailer will always go where the profit is.
Tools are just a "sideline" thing they offer as a convenience in an attempt to keep all of that customer's purchases "in house".
 
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zendriver

Well-known member
Joined
Dec 10, 2014
Messages
29,931
Location
Indiana
I don’t go to Lowe’s often but when I do, it seems like they have the same dust covered piles of craftsman tools. They had there the last time.

Walmart is a discount retailer and I’m hard-pressed tell a company that has 550 billion a year revenue. They don’t know what they’re doing.

Besides, we all know that nowadays,the name, “craftsman”evokes emotion and very little else

Besides Walmart slaps the name “hyper tough “on all kinds of inexpensive tools and sells them relatively cheap prices

That’s pretty much what Walmart does.
 

JeepYJ

Well-known member
Joined
Dec 25, 2015
Messages
9,029
We didn't get Walmart in California until the 90s and by then they were certainly going for cheap, but I don't think that was always their model.
Walmart has always been a discount retailer. High volume low margin has always been their thing.
 
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