Katy Area Wal-Marts Accused Of ‘Bait-And-Switch’ Tactics

By: John Pape on Thu, Jul 2, 2009

News

Some Katy-area residents are accusing Wal-Mart stores of engaging in “bait-and-switch” tactics on some popular bargain electronics items, but the company says the merchandise is just very popular and stores cannot keep them on the shelves.

 

Rogelio Mendoza said he and his cousin, Sammy Cerna, were both looking for a small television/DVD combination unit. Mendoza wanted the television for his bedroom, while Cerna wanted one for his workshop.

 

After checking prices, they found what looked like the best deal at Wal-Mart. Both decided on a 19-inch Emerson brand TV/DVD advertised at a “Rollback” price of $248.

 

Mendoza said he first went to the Wal-Mart next to Katy Mills Mall and was told the televisions were out of stock. The employee on duty told Mendoza the store had plenty of more expensive units available, but could not say when any more of the Emerson televisions would be available.

 

Mendoza then went to the Wal-Mart at 1313 N. Fry Rd., only to be told a similar story.

 

Cerna tried two different area Wal-Mart stores and also came up empty-handed. He said he tried to buy one of the 19-inch TV/DVD combos at Wal-Mart stores on The Grand Parkway at Bellaire Boulevard and at 3506 Highway 6. In each case, he said, employees on duty told him the units were not available.

 

All four stores had units on display and advertised at a price less than $250.

 

When Mendoza and Cerna compared notes at a backyard barbecue the following weekend, they began to get suspicious.

 

“What are the odds?” Mendoza asked. “What’s the chance that all four of these stores are out of (the Emerson television) at the same time and nobody can say when they’ll get more? That sounds fishy to me.”

 

Cerna said it struck him as odd that at both stores he visited, employees did not even bother to check to see if there were any of the televisions in stock.

 

“The minute I told them what I wanted, they just shook their heads and told me there weren’t any in stock. They didn’t even bother to look,” Cerna said. “Then they told me they had some of the larger TV/DVDs available, but they cost almost $500.”

 

Both men were told there was no way of knowing when, or if, more of the Emerson televisions would be received. Neither man was offered a rain check.

 

Mendoza also said one of his co-workers had a similar experience when he tried to buy a stereo unit at a specially-advertised low price. In that case, the co-worker checked three different Katy-area Wal-Marts for the stereo, only to be told none were available.

 

“It sure sounds like there’s something going on there,” he said.

 

During the week of June 15, InstantNewsKaty sent a person posing as a shopper into Katy-area Wal-Mart stores in an effort to confirm the men’s story. The shopper had similar experiences at the five area stores.

 

In each case, the shopper went into a Wal-Mart, found the 19-inch Emerson TV/DVD combination on display and then told an employee he would like to purchase one of the units. In each case, the shopper was told none were in stock.

 

At the Wal-Mart near Katy Mills Mall, an employee said none of the televisions were in stock and he did not know when the store would receive more. The employee did not check store inventory before saying none of the televisions were available.

 

The shopper then checked the store at The Grand Parkway and Bellaire Boulevard, just south of the Westpark Tollway. At that location, an employee checked the television on display with a handheld scanning unit and told the InstantNewsKaty representative that he, too, had none in stock. The employee did, however, say the store at 3506 Highway 6, just south of Westheimer, had five units in stock.

 

“They have five of them in stock right now?” the shopper asked

 

“That’s what the scanner shows,” the employee said. “They should have five of them in stock.”

 

The shopper drove directly to the Highway 6 location. As with the other stores, one of the Emerson units was on display and advertised at $248. When the shopper asked to purchase one of the units, an employee in the electronics department immediately said there were none available.

 

When told The Grand Parkway store had said there should be five available, the employee reluctantly checked the back of the store. He returned moments later and again said none were in stock.

 

“Why would the person at The Grand Parkway store tell me you have five in stock and now you tell me you don’t have any?” the InstantNewsKaty representative asked.

 

The employee shook his shoulders and said, “We sold ‘em, I guess.”

 

When asked if all five could have been sold in the 20 minutes it took the shopper to drive from one location to the other, the employee said he did not know.

 

“Guess a lot of people want ‘em. You could always buy one of the bigger ones; we’ve got plenty of those,” the employee offered.

 

He also said he did not know when the store might receive any more of the 19-inch Emersons.

 

The shopper had similar experiences at the Wal-Mart at 1313 N. Fry Rd. and the location in Sealy.

 

In each of the five stores, the shopper was told none of the Emerson televisions were in stock. In every case except The Grand Parkway store, the employees made no effort to check available inventory before saying the store was out of the TV/DVDs.

 

In three of the five stores checked, employees suggested the shopper look at larger, more expensive units. In each case, the shopper was told employees did not know when, or if, the store would be getting more of the Emerson units.

 

All five of the stores had demonstration units on display. The televisions in the Katy-area stores were priced at $238-$248. The Sealy store price was $208.

 

A week later, InstantNewsKaty conducted a follow-up check of the same stores. The same shopper went to the five stores to see if any of the Emerson units had been received. In each case, the shopper was told the store was still out of the televisions and it was unknown if when more might be available.

 

When contacted by InstantNewsKaty, Wal-Mart corporate spokesperson Melissa O’Brien denied the unavailable televisions were a part of any “bait-and-switch” tactic, but rather were simply very popular.

 

“Currently, either due to the digital conversion this month nationwide, Father’s Day, or both, 19-inch TVs are in high demand right now industry-wide and harder to stock.  However, we are working with our supplier to order more and are accepting deliveries each week in stores,” O’Brien said. “We also are looking for additional brands in 19-inch size due to the higher demand.”

 

O’Brien said the televisions were no longer being advertised as a “Rollback” item and $248 was the regular store price.

 

“We have not advertised the 19-inch Emerson with DVD player this year, but it is one of the more popular TVs of late.  One reason is that our prices on the TVs are much lower than competitors,” O’Brien explained. “The TV was on Rollback earlier this spring, but is no longer.  It is now priced at $248, which is still lower than at this time last year.”

 

O’Brien also said the Emerson units are “not out of stock for any extended period as you say, but are in high demand.” For that reason, she said, they do not remain in stock for very long.

 

However, a third check of the same five stores this week found the televisions still out of stock. At two locations – one in the Katy area and the store in Sealy – the Emerson units were no longer on display.

 

Mendoza was not convinced by Wal-Mart’s explanation.

 

“When you go to Target, if they have something out of stock, they have a sign tell you. Some places even offer you another item at the same price as the one they’re out of, “he said. “At Wal-Mart, they just tell you they don’t have any and try to get you to buy something more expensive.”

 

Mendoza also said he ultimately decided to buy a television from another retailer.

 

“It might have cost me a little more, but I’d rather spend my money with somebody more honest than Wal-Mart,” he said. “They just don’t care about customer service. I guess they don’t have to because they’re Wal-Mart.”

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