Best Buy says it will end 'showrooming' by extending its low-price guarantee.
The chain says it will now match advertised prices from brick-and-mortar rivals as well as 19 major online competitors, such as Amazon (Fortune 500), starting March 3. The price guarantees will be year round and apply to virtually all items. Previously, the company's price-match policy was limited to holiday shopping periods and featured items. ,
Craig Johnson, president of independent consulting firm Customer Growth Partners, said Best Buy's former management used showrooming as an excuse for bad sales.
"That has not been helpful to them, but they have problems prior to that which has nothing to do with showrooming," he said.
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.
On top of that, televisions -- one of Best Buy's biggest-ticket items -- have so much competition among retailers that there is little difference in pricing.
"The sales problem is that the TV category is a fiasco for retailers," said David Strasser, retail analyst with Janey Montgomery Scott.
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.
Still, Strasser said Best Buy's price matching will likely give the company an advantage.
"It'll help the consumer confidence for their customers, and help them close some sales," he said. "I think it's a no brainer."
|Microsoft unveils new Xbox One game console|
|Stocks end at record highs ahead of Bernanke|
|Apple grilled about tax havens|
|The Obamacare myth about small business|
|Is Saks for sale?|