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
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop
- Swedish Military Spots ‘Russian Submarine’ Off Stockholm Coast, An Alarming ‘Security Game Changer’