Rafi Mohammed

How Retailers Should Think About Online vs. In-Store Pricing

Posted on January 26th, 2017 (0 Comments)

Boy, brick & mortar retailers had a rough holiday season – and this is exacerbating Wall Street’s skittishness on their stock prices. Both Macy’s and Kohl’s reported moderate 2.2% drops in same store holiday sales. The result? Their stocks were crushed by 10% and 15% respectively.

Brick & mortar retailers have been grappling with how to react to low online prices ever since Amazon’s inception 23 years ago. Given Wall Street’s scrutiny on every revenue metric, punting on implementing a new pricing strategy is no longer an option. I think that in many cases, brick & mortar retailers need to view their brick & mortar vs. online operations as addressing different customers with different needs and price sensitivities. For further details, please check out my latest piece for the Harvard Business Review.

As always, thank you for reading my blogs!

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