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Retail Summit 2009 - Retailers divided on value of consistent pricing online and in-store
Retailers are divided on the use of different pricing architectures online and in-store with some regarding it as sharp practice because true multi-channel operators should have a consistent and transparent approach across channels.
These divergent views were strongly expressed by the participants of the panel discussion 'Multi-channel Retail in 2011' at the Retail Bulletin Summit 2009. Brian Farrelly, director of broadcasting at QVC, says: “We would not charge different prices as w
Adri Kraa, head of Ikea Shop Online, also questions the practice: “If you are cheaper online then what does it do to your shops and to your brand?” However, he says it might be different for retailers that transact over discreet multiple channels as opposed to an integrated multi-channel business.
Adam Marshall, e-commerce analyst at Comet, regards the practice as also acceptable for electrical retailers and suggests Comet has boosted sales through having different pricing across its channels.
“We've found we are doing better now compared with when we matched prices online and in-store. It is better to assume that people shop in different ways over different channels with people shopping online to compare prices. So it often does not make sense to treat all channels the same,” he explains. However, he pointed out that the Comet store managers have the authority to reduce in-store prices to match those online if the customer demands it.
As well as contending with pricing, retailers are also faced with the opportunity of installing kiosks in-store that enables them to effectively offer the same range as online. Kiosks were adopted by Kiddicare at its Peterborough store and this is something that Kraa says he will be looking at introducing into Ikea.
In addition to extending the ranges in-store Kraa says kiosks allow customers to serve themselves thereby potentially saving on sales staff. He could see how such technology would be even more suited to retailers with greater store densities as they would be able to offer 'click and collect' type services.
The Retail Summit 2009 was sponsored by Kurt Salmon Associates
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