Wal-Mart has said it will no longer stock Toshiba’s HD-DVD discs and players in favour of Sony-backed rival Blu-ray.

The move effectively put the nail in the coffin for Toshiba’s HD-DVD business after it battled for two years against Sony over which format would become the standard for the next generation of high-definition DVDs.

Blu-ray Disc Association US Promotions Committee chairman Andy Parsons said: “Retailers have a tremendous impact on consumer preferences and, as the world’s largest retailer, Wal-Mart’s reach and leadership are unparalleled.”

At the weekend, Toshiba said it was “making various considerations about its business policy” following the announcements by both Wal-Mart and Best Buy not to stock its products.