Price War: Targeting online retailers

Target is sick & tiered of being “showroomed”.

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According to USA Today

Target has pledged to match prices “on identical products” of select online rivals including Wal-Mart, Amazon, Best Buy and Toys R Us

Price matches may be requested at Target’s guest services desk prior to purchase, with proof of an online competitor’s current price or after purchase with the original Target receipt and proof of the lower online price.

The moves follow a disappointing holiday shopping season for the Minneapolis-based retailer, hurt by stiffer competition from online rivals and stores like Wal-Mart that have hammered its low prices.

It’s also the latest step from brick-and-mortar stores to combat “showrooming” — a growing trend for customers to browse their stores to check out products, and then go online to buy the same products for less elsewhere.

Many major stores have offered price matching guarantees for local competitors’ brick-and-mortar stores, but it wasn’t until this past holiday season that the focus was on matching online prices. That can be difficult, since online prices tend to be lower and fluctuate often.

Analysts say that the move could turn out to be “profit draining” as more people are encouraged to shop the Web to get the lowest price.

“Profit draining” … you think?

P,S,  In most states, Amazon will still have its sales tax advantage … I can’t imagine Target cutting the price to “net-net after-tax” levels

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