The Minneapolis-based big box says its stores will match advertised prices from all local retailers as well as 19 major online competitors, including Amazon.com, Apple.com, Bhphotovideo.com, Buy.com, Crutchfield.com, Dell.com, Frys.com, hhgregg.com, HP.com, HomeDepot.com, Lowes.com, Newegg.com, OfficeDepot.com, OfficeMax.com, Sears.com, Staples.com, Target.com, TigerDirect.com and Walmart.com. Best Buy will also match prices between its own stores and BestBuy.com.
The low-price guarantee, which hits online and in stores on March 3, aims to end “showrooming,” where customers check out products in its stores before purchasing them online. Experts blame the practice, among other things, for Best Buy’s weak sales and earnings in recent years.
Craig Johnson, president of independent consulting firm Customer Growth Partners, suggested to CNN that “showrooming” is just one of the big chain's problems.
Johnson said Best Buy also has too much retail space as a result of past overexpansion.
"They have too many square feet chasing too few buyers," he said.
While Target Corporation (NYSE:TGT), also based in Minnesota, also announced that it was expanding its price guarantee year round, rather than just at the holiday period, online retailers will still have a price edge for consumers who live in states with no sales tax on online purchases, particularly if the online retailer offers free shipping.
Shares of Best Buy were up nearly 3 percent Tuesday on the announcement.
Click here for full details on Best Buy’s low price guarantee.