Photo: Ian Muttoo
Best Buy’s biggest problem these days is “showrooming.“Showrooming is when a consumer walks into a store, tests out a products, and buys it on the cheap elsewhere online.
Best Buy has been called Amazon.com’s showroom, a nickname that the big-box retailer has been trying to shake.
Well, it seems Best Buy Canada has an obvious plan to address this problem. The Financial Post’s Hollie Shaw reports:
“We always had a price-match guarantee, but now we have extended that to all Canadian online competitors,” [Canada operations president Mike Pratt] said while touring a Best Buy in downtown Toronto. “Showrooming is a completely price-based concept — it’s about the perception of getting a lower price somewhere. When Web pure-play competitors don’t have price, they don’t have any other advantage, quite frankly.”
If you’re in the store and you know they’re giving you the best price, then you’ll probably buy it then and there.
The issue will be profitability. Online retailers have much lower overhead costs. They don’t operate store fronts and they require fewer employees.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.