Jan. 8 - Target's new year-round price match deal may do little to combat traditional retailers' biggest threat- Amazon.com. Bobbi Rebell reports.
It's Christmas all year long at Target- at least for its price matching policy. It is taking it to 365 days a year- matching prices on websites of key rivals Toys R Us, Best Buy, Wal-Mart and Amazon. REPORTER BRIDGE: BOBBI REBELL, REUTERS REPORTER (ENGLISH) SAYING: "But here's the thing: only one name on that list actually matters- and that is Amazon. Target and its traditional rivals face a retail juggernaut that some analysts say can't be beat in a price war." WSL Strategic Retail CEO Wendy Liebmann: SOUNDBITE: WENDY LIEBMANN, CEO, WSL STRATEGIC RETAIL (ENGLISH) SAYING: "I believe that Amazon has had now close to 10 years if not more on understanding who is buying what and when they are buying. What are the dynamics? They have all the analytics at their fingertips to play the pricing game. So I don't believe you can beat them on that." Liebmann says that doesn't mean they have to close up shop and give up- just compete differently. Retailers have to develop consistent messages both online and off-line about prices and products- because the lines between "brick and mortar" and "click and order" are blurring. And with dynamic pricing- consumers are now finding the best price- at that exact moment. SOUNDBITE: WENDY LIEBMANN, CEO, WSL STRATEGIC RETAIL (ENGLISH) SAYING: "It's about competing in the new virtual world but it is also very easy to go off message if you are not careful and have this price war that nobody wins anymore. So you have to balance it out with: aren't we a fabulous place to come and shop, we've got wonderful merchandise you cannot find anywhere else and we've got great prices too." And ironically, with the exception of TV's, Amazon actually doesn't offer price matching-even when an item's price drops on its own site after a customer buys it.