Best Buy Digs Deeper into Price Discounting

As we’ve reported before, Best Buy is in a battle for its future. As such, the chain’s decision to be more aggressive with its holiday price-matching strategy is a tricky maneuver — and it will be tough on profit margins since Best Buy’s operating costs are higher than those of online firms that do not have stores to staff, decorate, and stock.
Ann Zimmerman, writes in the Wall Street Journal that: “Best Buy is planning to match the prices of Internet competitors such as this holiday season, even as it plays down its concerns over shoppers browsing gadgets in stores only to buy them for less online. The retailer says it is taking these steps to improve the percentage of people who walk into their stores and leave with a purchase — about 40% of shoppers. The electronics chain also is preparing to offer free home delivery on merchandise that is out of stock in stores, according to a person familiar with the matter, in spite of recent remarks by new chief executive Hubert Joly that ‘showrooming’ by consumers has been blown out of proportion.”
What do YOU think about this pricing approach?
Click the photo to read more from Zimmerman.

Image by Reuters
This entry was posted in Online Retailing, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 7: Communicating with the Customer and tagged , , , , , , , , , , . Bookmark the permalink.

2 Responses to Best Buy Digs Deeper into Price Discounting

  1. Pingback: Target: The Latest Entrant into Holiday Price Matching | Retailing: From A to Z by Joel Evans

  2. Pingback: Is Price Matching Working — Or a Work in Progress? | Retailing: From A to Z by Joel Evans

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