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.
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