Online shops undercutting their own "brick and mortar" shops

I recently found that my favourite shoe shop are having 30% off their reduced items with free delivery - exclusive online and outlet shop only.

So I went to the city store and found a pair of red shoes that I like with 30% off original price ($99 reduced to $69). When I asked if there is any further discount on the reduced items, they told me that to get the extra 30% off reduced item I have to buy them online or from the DFO outlets. In the end I bought it online cos it's a lot cheaper ($48 + free delivery).

I understand that these days, companies have to be competitive and set up a good online store to survive, but they are undercutting their own shops! The online price is way cheaper than the ones in the actual shops for the SAME pair of shoes..

Do you think it's right for stores to undercut their own shop chain? (I think Harvey Norman tried to do that with their game sale).

Personally, I don't think it's right to undercut your own shop. I don't want the shop chain to start closing down cos they can't compete with their own online store. :(

Comments

  •  

    Why worry? Presumably the owners know what they are doing, or not. In the case of HN the online store is a separate franchise.

  •  

    Depends a lot on the business structure. For franchises this is a really big issue, and I strongly suspect is a factor for why jb 'direct import' doesn't exist anymore.

    If both store are owned by the same players I think it is fine - pay more to get it right here and now.

  • +2 votes

    I feel bad for the store workers though. They gave me good service and all but I still didn't buy from them..(I know they staff and manager must have some sales target etc) Oh well that's just the way it is..

    •  

      Yes, it's a bit ironic that jobs are potentially going to be lost or sent offshore to a factory based on their advice. I guess they prefer you to shop at their online store than someone elses though. Either way, I don't think the model is sustainable as the stores will have to close without sales.

  • +2 votes

    Could be coming direct from the supplier and thus cost less.

  •  

    meh, i wouldn't lose any sleep over it. Same company.

  • +1 vote

    Personally, I don't think it's right to undercut your own shop. I don't want the shop chain to start closing down cos they can't compete with their own online store. :(

    Well why would you buy online then?
    You are putting people out of work!

    • +1 vote

      they would buy online because it is cheaper and their first duty is to themselves and their family.

  • +1 vote

    Good Guys seem to do it a lot. I've gone into the store a couple of times to get an item I'd found online, expecting it to be that price instore, but it wasn't. Getting to give it for the online price was like getting blood out of a stone, but then, I suspect the local store is just a bit like that.

    Have others found the same thing or is our local store just miserly?

  •  

    iPhone ipad undercutting iPod is the same. Undercut your brick and mortar but buildup online. At the end of the day, survival is about who adopts to change the best

  •  

    OPSM direct has been doing it for ages too. The contact lenses are cheaper online than in stores…

    So as much as retailers need to adapt to the changing market, the shoppers need to be aware that one day those glorious shopping strips will disappear one by one (if not already happening)…quite sad really.

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