Bed Bath & Beyond Has Beat Internet-Retailer Giant Amazon in Terms of Pricing


Interesting news from investment firm BB&T Capital Markets. According to their recent analysis, Bed Bath & Beyond has beat Internet giant Amazon in terms of pricing.

Bed Bath & Beyond is clearly making strides with their customers in this age of “show rooming”; where you go to brick and mortar retailer to see if you like an item, and then, go online to make your purchase. Clearly, the price management team at Bed Bath & Beyond has come to the realization cited in the news story, that if you want to stay relevant to your customers, they had to invest in their prices. Not only does this keep them in a more competitive position with Amazon, but it gives them a chance to build upon sales of their competitively priced options, by leveraging greater enticements for more in-store purchases.

Just take a look at their 20% coupon mailer that Bed Bath & Beyond uses for in-store purchases of your most expense item. Not only does this coupon effectively get their customers into the store, it also gives them previous demographic information of what their customers want to buy.

As a brick and mortar retailer, Bed Bath & Beyond has pricked its poison, lose on some key margins to continue to drive up sales instead of putting themselves as a competitive disadvantage that some companies like Best Buy have found themselves at due to their refusal to get into the “deals” game with Internet retail outlets like Amazon. Best Buy has had to change course in order to stay in business by offering “price matching” to meet their competitions prices. But even that “match” asks the customer to take the extra step by bringing an advertised price in to match Best Buy’s price.

Bed Bath & Beyond is putting into effect the elimination of that step by going lower then their competition. Might not be long before other big box retail outlets take their cue and follow suit.