Lee Peterson

Target Looks to Battle Pricing Apps

January 24, 2012

FROM RETAILWIRE:
Target Corp. is exploring pricing changes to counter the practice of "showrooming," or using mobile pricing apps to check out and scan the price of products in stores only to purchase them at a less expensive price online. Do you think Target's purported tactics to offset the "showrooming" trend will be effective?      [more...]

Like the record companies and Napster, you may be able to stop a consumer-driven idea for a while, but the concept of show-rooming will eventually evolve into something you can't stop -- as Napster evolved into 99 cent downloads.

At the end of the day, the best tactic is to join 'em, because you really can't beat 'em. Maybe Target's 'special subscriptions' will do that, but it sounds more like a "we'll beat any price, any time" strategy might work better.

This is just the tip of the iceberg, of course, and retailers across the board need to develop strategies that address the effects of technology on their business model sooner than later -- or, as Les Wexner once said, "I'm afraid to stop and smell the roses ... I could get hit by a truck."