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Best Buy To match Online Prices In Store To Stop 'Showrooming'

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Oct 12, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Best Buy to match online prices in store to stop 'showrooming' (click for full article)

    Oct. 12, 2012 (2:29 pm) By: Matthew Humphries

    "Ever since Internet shopping appeared on the scene online retailers have carried a price advantage over retail stores. It makes sense as to why, too. Retail stores have additional costs including renting that expensive store location, paying staff to serve customers, and paying the bills to keep the lights on and the doors open. There's also the costs of delivering stock regularly from warehouses to the different stores.


    The one advantage retail stores do have is the ability to allow consumers to get hands-on time with products and talk in person with someone for advice. However, savvy consumers want the best of both worlds, so they go to the store to look at what they want, so called "showrooming," then go order online to save some cash.


    It seems Best Buy has had enough of this practice and decided to do the only thing it can to compete and get more people buying: match prices in store with online retailers.


    Apparently this holiday season you will be able to walk into any Best Buy and purchase products that equal e-tailers like Amazon on price. That way the consumers gets the hands-on time and the cheapest price in-store.


    Best Buy only see around 40% of people leave its stores with a purchase in hand. Showrooming accounts for around 15% of visitors. If Best Buy can get that 15% buying, even at the lower prices that's going to make for a better quarter.


    The question is will Best Buy have any profit left to bank by matching online pricing? If it doesn't then expect sales staff to push you to buy other items at the counter."
     
    Last edited: Oct 12, 2012
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    Target copies Best Buy, will match online prices (click for full article)

    Oct. 17, 2012 (12:30 pm) By: Matthew Humphries

    "Last week Best Buy made the surprising announcement that it was set to match pricing in its stores with online retailers. The promotion is set to last through the holiday season and is a bid to stop 'showrooming' where consumers browse in-store, but then buy online to save money. Apparently, Best Buy is already matching prices, but you have to remember to ask to get them to check.


    If one retailer does it, others have to respond and Target looks to be the first to do so. The discount chain has also announced that for the holiday period it will be matching online prices. The promotion starts on November 1 and will run to December 16, which should capture most of the pre-Christmas sales. For that last week before Christmas (December 17-24), Target will only match prices against Target.com, and only on lower priced items."
     
    Last edited: Oct 18, 2012
  3. lexi08

    lexi08 New Member

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    I have also heard that in order to fight back against showrooming, Wal-mart is also trying to match the convenience of shopping on Amazon.com. It is trying out a new same-day delivery service, competing with the online retail giant’s Local Express Delivery pilot program.
     

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