Washington, D.C. (May 31, 2013)
Best Buy CEO Hubert Joly told an industry conference this week
that 92 percent of the retailer's sales are done at retail.
“We said that showrooming
actually starts on the Web, and we have to do much better from
that standpoint, which is then a key driver of traffic to the
stores,” he said, according to Home Media Magazine.
Joly referred to "showrooming," the industry term used to
describe a shopper who examines a product at one vendor's site
or store, but decides to buy it at another because it's less
expensive at the second one. Best Buy has said repeatedly that
it wants to stop showrooming, or at least, give consumers less
cause to do it.
According to a survey done this morning by TVPredictions.com,
Joly has his work cut out for him. Of today's 10 best-selling
TVs at Amazon that are also in stock at BestBuy.com, none were
cheaper at Best Buy. (See:
Amazon's top-selling TVs)
Not a single one. (Although one set did have the same price at
From Samsung 32-inch sets to Vizio 32-inch TVs to Samsung
60-inch sets, the Amazon price was better every time.
But that's only half the story. The price difference was often
just a dollar or two. (In only one case was the difference more.
Amazon was selling a Samsung 32-inch LED TV for $40 less than
BestBuy.com.) Clearly, knowing that Best Buy is its top
competitor, Amazon shaved the Best Buy price by $1-5 to ensure
that a comparison shopper would see that it was offering a lower
price than Best Buy.
While $1-5 is not much, the fact that Amazon always has a lower
price eventually will have an impact on prospective buyers. They
will come to conclude that Amazon's TVs are cheaper than Best
Buy, even if it's just by a few dollars.
Home Media Magazine writes that Best Buy's online business
increased 16 percent over the last year, although its online
market share is still a meager seven percent.
"There is no reason
why it should be lower (than others),” Joly said.