Paula Rosenblum

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...]

The following is one of the funniest things I've read in a long time: "What we aren't willing to do is let online-only retailers use our brick-and-mortar stores as a showroom for their products and undercut our prices without making investments, as we do, to proudly display your brands...."

And what exactly is Target going to do about it? As my partner Nikki likes to say "Will you cover your stores in tin foil so that no one can get a cell signal?"

An "exclusive product" will still have similar characteristics to others that are sold online. Just like the electronics market. A gazillion SKUs, but once you understand the specs, you can make different choices. And mobile apps are getting smart enough to figure that out.

I'm frankly surprised Target's execs have reacted this way. The company has a great brand and didn't need to call attention to itself in this way. It's telling the reader that maybe the brand is NOT all that unique.

I think the company has had a seriously bad 8 months (starting with it's unfortunate web site troubles). This did not help.