Let the consumer virtual hysteria being anew -- as retailer Wal-Mart Stores, Inc. (NYSE:WMT) has located a "hidden cache" of the T.M.X. Elmo doll (apparently) and will be selling 4,000 dolls every day this week on its Web site at www.walmart.com. Wal-Mart Stores, Inc. initially experienced a severe shortage of the hot holiday gift item, but now will be sitting pretty on sales of the doll, which are likely to go nuts as December 25th gets closer. Let's start the race, please.The T.M.X. Elmo doll will become available at Wal-Mart's website at precisely 12:00pm EST today (get in cyberspace line now) for a "first come, first serve basis" and at the price of $39.97 each. If only I could be watching Wal-Mart's web traffic stats in real-time today.
With retail experts warning that the T.M.X Elmo would be in short supply over the holiday season, the doll instantly sold out almost everywhere when it was launched in September. Mattel, Inc. (NYSE:MAT) -- the doll's manufacturer - -warned that it would not have enough supply to meet demand, causing a frenzy that I suspect may have been by design and not accident. In fact, I wonder if Wal-Mart announcement here was designed? The retailer said that "We recently secured more Elmo inventory from our supplier and we wanted to give our customers one big opportunity get the toy before Christmas."
I agree with many analysts here in that Wal-Mart probably designed this to ensure a ton of new Elmo dolls would be available just a few weeks before Christmas as a way to entice shoppers to its virtual store and pump sales. It's not a new trick, but a sly one.
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