Best Buy (BBY) Ups Ante on Pricing, Converting More 'Showroomers' into Holiday Shopping Season
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Price: $85.89 +0.19%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +1.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +1.1%
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Best Buy (NYSE: BBY) shares are flat Friday morning as speculation surrounds whether or not the big box retailer will look to compete more with e-commerce giants like Amazon.com (Nasdaq: AMZN) and the newly revamped eBay (Nasdaq: EBAY) heading into the key holiday shopping season.
Put those worries to rest, folks, Best Buy is no dummy.
The move comes as retailers with brick-and-mortar locations look to batlle "showrooming," where customers come in and check out items before going home to buy them online. The practice has become common, with Best Buy saying about 40 percent of people walk into its stores and leave without a purchase.
In addition to price matching, Best Buy will also offer free home delivery on items that are out of stock.
Walmart (NYSE: WMT) will pull a similar move, but is actually embracing the idea of being a showroom. The large retailer is testing out same-day delivery in certain markets to help aid in sales.
Retailers and researchers are mixed about how much "showrooming" affects the bottom line. While many admit that it does happen, comparison shopping is nothing new and the retailers don't see it as a dire situation as long as they can stay competitive.
It's not like Best Buy, Walmart, and others don't have have a website. All in all, look for hot competition this holiday shopping season which will only lead to one thing: amazing deals being passed on to customers.
Put those worries to rest, folks, Best Buy is no dummy.
The move comes as retailers with brick-and-mortar locations look to batlle "showrooming," where customers come in and check out items before going home to buy them online. The practice has become common, with Best Buy saying about 40 percent of people walk into its stores and leave without a purchase.
In addition to price matching, Best Buy will also offer free home delivery on items that are out of stock.
Walmart (NYSE: WMT) will pull a similar move, but is actually embracing the idea of being a showroom. The large retailer is testing out same-day delivery in certain markets to help aid in sales.
Retailers and researchers are mixed about how much "showrooming" affects the bottom line. While many admit that it does happen, comparison shopping is nothing new and the retailers don't see it as a dire situation as long as they can stay competitive.
It's not like Best Buy, Walmart, and others don't have have a website. All in all, look for hot competition this holiday shopping season which will only lead to one thing: amazing deals being passed on to customers.
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