Wal-Mart Moves Into Hot Topic

Hot Topic Inc. built its recent comeback on being the go-to place for merchandise for hit vampire film “Twilight,” yet Hot Topic will soon have to deal with some monster competition.

On March 2, the largest retailer in America, Wal-Mart Stores Inc., announced plans to construct Twilight shops-in-shops in all of its 7,800 stores. The mini-shops will promote the March 21 release of “Twilight” on DVD.

Some of the Wal-Mart mini-stores will host special events to promote the DVD release. For instance, “Twilight” gifts will be presented to the first 50 people who purchase DVDs at specific store locations. Wal-Mart plans to host an Internet radio event where “Twilight” actor Taylor Lautner will be interviewed and field questions from fans.

The monster competition may not spell the end of Hot Topic’s “Twilight” gold rush—even though Wal-Mart’s “Twilight” mini-shops presumably will also sell some apparel such as T-shirts. According to retail analyst Jeffrey Van Sinderen, Hot Topic, which maintains a fleet of 683 mall-based stores, may not have to directly compete with Wal-Mart stores, which are visited by 200 million people annually.

Van Sinderen contends the two retailers have different customers and different turf. Hot Topic is for a mall crowd. Wal-Mart stores are often stand-alone anchors. However, Van Sinderen said Wal-Mart could take some of Hot Topic’s business. “The question is ’How much thunder will Wal-Mart steal?’” he said.