Best Buy looks to retain customers, plans to match Amazon on price

Wal-Mart earlier this week threw down the gauntlet on Amazon.com, announcing that it plans to offer same-day delivery in some markets this holiday season. Now, it’s Best Buy’s turn.

The electronics retailer is planning to match the prices of Amazon.com this holiday season, with The Wall Street Journal reporting today that the strategy is an attempt to retain more of the shoppers who browse in Best Buy stores. According to the report, 40 percent of Best Buy shoppers leave one of its physical stores without buying anything.

Presumably, many of those shoppers leave for online retailers, including Amazon.com. Known in the retail industry as “showrooming,” large big-box retailers are looking to retain some of those customers who walk out the door.

Earlier this week, a new online diamond retailer called Ritani emerged with a unique business model that combines online shopping with the benefits of physical retail. And other retailers such as Nordstrom are experimenting with ways of combining brick-and-mortar retail with online sales.

Last year, Amazon got under the skin of many retailers when it announced a promotion around its Price Check app. The company announced last December that shoppers who performed an in-store “price check” using the bar-code scanning iPhone or Android would receive $5 discounts on Amazon.

  • Best Avoid

    I guess I’m one of the 40 percent who walk into Best Buy and come out without buying anything. Nice attitude to accuse me of “showrooming”. Truth is, I occasionally walk in because I genuinely want to spend my money, but then I’m reminded how obscene some of their prices are. I mean $59.95 for an HDMI cable?! You’ve got to be kidding me. Then I walk out, frustrated. Best Buy, change your business model and act as what your name promises you are, then I’ll gladly spend my money in a retail store again. BTW, I never had those negative shopping experiences when I used to live near a Fry’s Electronics store.