Best Buy Looks to Crush Amazon with Price Match, Free Home Delivery This Holiday Season
October 12, 2012 10:46 PM
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Only about 40 percent of Best Buy shoppers leave the store with a purchase in hand, but the retailer wants to bump this percentage up a bit this holiday season
Brick-and-mortar retailers have been battling with online stores for years, but
is looking to reclaim a place in shoppers' hearts (and wallets) this holiday season with online price matching and free home delivery.
Best Buy announced that it will match the prices of online competitors like Amazon in order to attract more customers. This is huge for Best Buy, considering it has
lost a significant amount of business
to Amazon alone. With e-tailers like Amazon, customers can shop from the comfort at home, receive lower prices and quick delivery.
But Best Buy isn't betting on price matching alone. It's heating up the competition with free home delivery of products that are out-of-stock as well.
Right now, only about 40 percent of Best Buy shoppers leave the store with a purchase in hand, but the retailer wants to bump this percentage up a bit this holiday season.
"We have a tremendous opportunity to increase that close rate," said Matthew Furman, Best Buy spokesman.
Best Buy isn't alone in its holiday efforts to beat Amazon.
is currently testing a same-day delivery service for customers that who buy popular items off of the Wal-Mart website during the holidays. Toys "R" Us is another brick-and-mortar that is working to speed up delivery and offer price matching -- however, its price matching will not include Amazon, only brick-and-mortar competitors.
An interesting aspect of the holiday season is that a growing number of shoppers have started using brick-and-mortars for showrooms -- or checking out products in person -- then going home to buy the products online.
While this is another hurdle that brick-and-mortars must overcome, strangely, they're embracing this model.
"Let's be the best showroom," said Mike Duke, Wal-Mart CEO. "Let's be the best place where customers want to go and get the experience."
According to the brick-and-mortar stores, they can still offer things that Amazon can't. For instance, human customer service and options for purchase like online
brick-and-mortar stores. They added that Amazon now
must collect sales tax
in many U.S. states, so prices are not quite as low on the site as before.
To further hinder Amazon's sales, Wal-Mart and Target have
stopped selling the e-tailer's Kindle Fire tablet
The Wall Street Journal
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RE: Good luck with that...
10/13/2012 11:57:02 AM
Part of the problem is the minimum wage increases. As its gone up, service goes down. Why? Two reasons. A bad economy and competition from online stores.
Both reasons mean they can't really raise their prices to adjust to the higher costs of labor that they have to pay. Then you add in sales tax. How do you compete when you have higher overhead costs and then also have charge people something online stores don't?
And the higher the minimum wage goes up, the worse it gets. But of course you get these idiot politicians who want to try and act like they're helping people by raising the minimum wage while not understanding the purpose of the minimum wage. It's not meant to raise a family on. It's meant to provide a fair wage for an hour of work for young adults in high school or college or even single people.
Trying to treat it as a minimum salary for someone to raise a family on makes us less competitive, has killed jobs, and has made customer service terrible in ALL stores. I can't think of a single large store that I go into today that provides good customer service. Some stores feel deserted of employees. Because with today's economy, they can't afford to keep stores staffed full of employees at today's labor rates and profit margins. Best Buy, JC Penny, Dillards, Target, even Walmart (all 3 times a year I go in one).
RE: Good luck with that...
10/14/2012 6:31:49 AM
What absolute garbage.
So now the GOVERNMENT is responsible for Wal Mart and Best Buys poor customer service.
Brilliant. I've heard it all now. I suppose it was the Government who did the interviews for the positions. It's the government who sets the store targets. It's the government who sits in on the executive directors meetings.
No doubt the government is responsible for a lot of things, but to claim they are responsible for the "we don't give a shit about customer satisfaction, just the bottom line" attitude at Wall Mart and Best Buy is in any way the governments fault.
What a tool.
RE: Good luck with that...
10/14/2012 1:30:36 PM
Actually thanks to Obamacare, it's going to get even worst. As thousands and thousands of full time positions are converted to part-time to avoid paying excessive benefits.
RE: Good luck with that...
10/14/2012 2:46:26 PM
While I disagree with him that the minimum wage is responsible for poor customer service, he's absolutely correct that it's silly to insist that minimum wage should be a living wage. Defining the minimum wage to be a living wage is equivalent to saying that
job you can get paid for doing
be something you can make a living doing.
Think about that. You've basically priced trivial and mundane jobs (like paying kids to shovel snow off your sidewalk or mow your lawn) out of existence. If you don't have any skills which you can make a living doing, like kids fresh out of high school with no job experience,
there are no jobs for you
The important thing to realize is that money is not just some arbitrary measure of value. It's a representation of productivity. For a person to be paid a living wage, they must generate sufficient productivity equivalent to that needed to live (i.e. grow food, make clothing and shelter and transportation for themselves). If you try to get around this by redefining the value of money so that the most simple and mundane job now counts as enough productivity to live on, that doesn't mean the simple job
generates that much productivity. You've created a mismatch between the real amount of productivity and the measured (in dollars) amount of productivity. Reality will simply correct this mismatch by either decreasing the value of money (inflation) so that your defined minimum wage is no longer a living wage, or just making such jobs disappear.
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