Best Buy USA counters the showrooming trend as it kicks off a "Low Price Guarantee" scheme on both online and brick and mortar stores-- effectively matching prices with all N. American and 19 online competitors.
Through the scheme the retailer promises it will match the prices of qualifying products should customers find lower prices on the likes of Amazon, Newegg, TigerDirect and hhgregg, even if it will not match online prices with 3rd party vendors (aka Marketplace vendors) on online retailer websites.
Customers will also get matched prices post-purchase should Best Buy lower the price within 15 days of purchase.
Not on the price-matched online retailer list is eBay, which trades at great discount to Amazon.
"Best Buy is the only retailer to offer a Low Price Guarantee in addition to having a full range of the latest and greatest devices and services, a sales force dedicated to providing impartial and knowledgeable advice and full support for the life of the product," Best Buy claims.
Best Buy is not the only retailer with such a scheme-- Target recently introduced a similar scheme as it struggles against the online competition.
In other news, Best Buy appears to be doing better than expected over the past 2 months-- raising stock prices and possibly complicating the efforts of founder (and ex-chairman) Richard Schultze to buy it.
According to the Star Tribune such a reversal in fortunes (through efforts by current CEO Hubert Joly) mean Schultze and his team will either have to shell out more to acquire the retailer or find another means to take control, such as finding an outside investor willing to buy a seat into the Best Buy board.
Schulze owns a 20% stake in Best Buy and holds 2 seats in the 11-member board of directors.
"There are all sorts of options at this point," an anonymous source tells the Star Tribune. “Buying the company is still on the table. Both sides [Best Buy and Schulze] are trying to make it happen.”
Will Schulze manage to retake control of the retailer he formed 46 years ago? Reportedly Joly is in touch with Schulze (even discussing strategy with him) even as he tries to bring life (or at least stabilisation) back to Best Buy. Perhaps a partnership of the two will bring further strength to the retailer...
Go Best Buy Ends "Showrooming" With Low Price Guarantee
Go Soaring Best Buy Stock Complicatd Schulze's Efforts to Acquire Company (Star Tribune)