By Karen Talley
Target Corp. (TGT) is setting out to fight "showrooming" this
holiday season by matching the online prices of some of its biggest
competitors.
The retailer said Tuesday it will, for the first time, meet the
prices of Amazon.com Inc. (AMZN) and the online arms of Wal-Mart
Stores Inc. (WMT) and Best Buy Co. (BBY) as well as Toys "R" Us and
Babies "R" Us. The price-match program will run from Nov. 1 to Dec.
16, and customers will be required to bring in proof from an ad or
the competing website.
Target is stepping up its competitive capabilities to fend off
showrooming, the practice of consumers perusing merchandise in
stores and then buying the merchandise online more cheaply.
"I don't mind being a showroom, as long as we book the sale,"
Kathee Tesija, head of merchandising, said.
Target's initiative comes at the approach of the holiday season,
when as much as 40% of annual sales can be done.
"We will be highly promotional and intensively competitive on
price," Target Chief Executive Gregg Steinhafel said at a meeting
with the media.
Last week, Best Buy announced a similar move of matching prices
against some competitors, including Amazon, and offering free home
delivery on items out of stock at stores. Wal-Mart is testing
same-day delivery in select markets.
Research on showrooming suggests that while only a fraction of
shoppers use mobile phones in stores to compare prices, many do go
home and check what competitors are charging online. A survey by
retail consultancy AlixPartners this summer found that in the prior
12 months, 33% of respondents--and 43% of electronics
buyers--bought something online after checking it out in a store
first.
--Ann Zimmerman contributed to this article.
Write to Karen Talley at karen.talley@dowjones.com
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