Retail

Why Best Buy Should Show Amazon Prices at Its Stores

“Showrooming” is one of the most significant enemies of the bricks-and-mortar retail world. Customers examine items in stores, and then shop for them online to get better prices. Showrooming has been cited as one of the major reasons for erosion of Best Buy Co. Inc. (NYSE: BBY) sales, as people look for consumer electronics at its locations and then buy them at Amazon.com Inc. (NASDAQ: AMZN) to get better prices. Best Buy’s best defense to change shopping patterns at its stores is to show the Amazon prices for all of its top-selling items in every aisle, as well as to price those items at or below Amazon’s price

The practice of competitive pricing is almost as old as the retail industry. “We’ll match any price, from any of our competitors, and if we can’t, we’ll pay you $100.” That kind of message has been a proven method for bricks-and-mortar stores to steal customers from one another. However, the process has become an instant one. Consumers can walk through Best Buy stores and buy the things they want at Amazon using their smartphones — getting the lowest price instantly. And often they get it with free shipping from Amazon.

Best Buy could create a nearly fool-proof method of getting shoppers to buy what they want before leaving its locations. It would need to place computers throughout its stores with Web pages open to the Amazon pages that match the Best Buy merchandise. The comparisons would immediately show “their price versus our price” against Amazon. The risk is that the Amazon price would be lower. Best Buy’s option would be to meet that price, or even offer its merchandise for a price that is lower. Best Buy might have to put dozens of PCs throughout its aisles to make the system work. But it would give itself an excellent chance to make a sale on the spot, before customers could go to their Amazon accounts and fill their online shopping carts with items they have shopped from Best Buy’s inventory of smartphones, TVs, DVD players, sound systems, GPS devices, tablets and PCs.

Best Buy’s stock has moved from a 52-week low of $11.20 to a recent 52-week high above $44. It has posted one of the top performances of any stock in any category this year. Now, it has to prove the rise is justified with a powerful performance during the most important shopping period of the year. That means it has to keep all the customers who shop at its stores, and perhaps steal some who might have shopped at Amazon.

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.