Pricing expert Rafi Mohammed has published a new Harvard Business Review feature.
One of the biggest questions faced by brick-and-mortar retailers today is whether prices should be the same online and in stores. Gaining clarity on this issue is critical for traditional retailers to successfully compete in both environments. Brick-and-mortar retailers have been struggling with pricing since Amazon’s inception, 23 years ago, so why is it so important to resolve this issue now? Well, the news for retailers keeps getting worse. Macy’s and Kohl’s both reported 2.1% declines in comparable store sales in November and December, resulting in 10% and 15% stock price drops, respectively. The Limited shuttered its stores and is now focusing exclusively on e-commerce. It’s clear that an increasing number of customers don’t value the experience of shopping in physical stores. [HBR.org]