Best Buy is close to offering televisions for as cheap as Amazon.
The brick-and-mortar tech giant’s televisions are just 0.7% more expensive than Amazon’s, according to Deutsche Bank.
And the gap could continue to shrink.
Best Buy’s television prices are up 6% from a year ago — less than Amazon’s gains of 9.2%.
Executives at Best Buy have made it clear that 4K Ultra High Definition televisions are the future of the business.
CFO Sharon McCollam recently told Goldman Sachs that the TVs would “be a decisive product for the franchise.”
The TV’s picture is four times more detailed than standard high definition, according to Best Buy’s website.
The TVs also include internet access for easy television, movie, and music streaming.
Best Buy is working with the manufacturers Sony and Samsung to showcase all the TVs’ features in stores, McCollam said.
Because the televisions currently cost $US4,000 to $US10,000, they are not popular enough to affect business, McCollam said. Prices are expected to decline in the next couple of years.
Best Buy’s store traffic has been declining as more people buy online.
In a report last week, Goldman Sachs said that people prefer to buy large, heavy objects online because they are difficult to ship.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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