Target said today that it would match online pricing in all of its stores year-round -- a move deployed by many retailers this holiday season -- in a bid to stop Amazon's "showrooming" effect.
In a statement, Target said it will match pricing from Amazon.com, Walmart.com, BestBuy.com and Toysrus.com (including Babiesrus.com). In a nutshell, Target will match prices on items found cheaper elsewhere within seven days.
The move is likely to be followed by Best Buy and other retailers that deployed the price matching stunt over the holidays. However, it's unclear whether price matching really matters all that much.
Why? Target's sales for the holiday season weren't that great. For December, Target's same-store sales were flat. In fact, Target's same-store sales for December were disappointing -- relative to Wall Street estimates -- for the third consecutive year.
Jefferies analyst Daniel Binder said:
Target has disappointed three holiday seasons in a row, as it works to strike the appropriate balance between price and promotions in a world that is increasingly competitive and shifting toward e-commerce. We are concerned that Target is losing mind share with the consumer during important periods like holiday.
Meanwhile, Best Buy, another price-matching poster child, is likely to report sluggish holiday s... [Read more]
by Larry Dignan via CNET
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