Best Buy To Match Price Of Online Competitors And Retailers With 'Low Price Guarantee' [DETAILS]
By Carey Vanderborg | February 20, 2013 7:17 AM EST
Electronics retailer Best Buy Co., Inc. (NYSE:BBY) announced recently its latest promotion in response to the company’s ongoing rivalry with online competitors such as Amazon.com, Inc. (Nasdaq: and Apple Inc. (Nasdaq: )AAPL).
According to the Minneapolis-based electronics retailer, stores will match advertised prices from all local retailers as well as 19 major online competitors, including Amazon.com, Apple.com, Bhphotovideo.com, Buy.com, Crutchfield.com, Dell.com, Frys.com, hhgregg.com, HP.com, HomeDepot.com, Lowes.com, Newegg.com, OfficeDepot.com, OfficeMax.com, Sears.com, Staples.com, Target.com, TigerDirect.com and Walmart.com. Best Buy will also match prices between its own stores and BestBuy.com
The low-price guarantee, which hits online and in stores on March 3, aims to end “showrooming,” where customers check out products in its stores before purchasing them online. Experts blame the practice, among other things, for Best Buy’s weak sales and earnings in recent years.
Craig Johnson, president of independent consulting firm Customer Growth Partners, suggested to CNN that “showrooming” is just one of the stores problems.
Johnson said the chain also has too much retail space that came from over-expansion in the past.
"They have too many square feet chasing too few buyers," he said.
While Target Corporation (NYSE:TGT) also announced that it was expanding its price guarantee year round, rather than just at the holiday period, online retailers will still have a price edge for consumers who live in states with no sales tax on online purchases, particularly if the online retailer offers free shipping.
Shares of Best Buy were up nearly 3% on the announcement.
Click here for full details on Best Buy’s low price guarantee.
To contact the editor, e-mail:
Most Popular Slideshows
Join the Conversation
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- The Pirate Bay Blockade: Cost Of Blocking Websites Like TPB Is Ridiculously High
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu
- Virginia Woman Who Posted Naked Image Of Ex-BF’s New Partner 1st Person Charged Under Revenge Porn Law
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Meizu MX4 Pro To Arrive In November In Black And White Colours, Features Higher Than QHD Display, Exynos 5430 SoC And 3 GB RAM
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report