Pricing

Thanksgiving could turn into a full shopping day this year, industry consultants say, as retailers debate moving up their openings and doorbuster events. While retailers aren't expected to announce any special Thanksgiving hours until the second half of October or into November, "it's inevitable to see them open all day or even earlier than last year," said Joel Bines, managing director and co-leader of consulting firm AlixPartners’ retail practice, in an interview.

As retailers gear up for the holiday selling season, industry watchers ask the same inevitable questions. How promotional will they get? Will discounts make a difference to their sales? And at what cost to profit? They should listen closely to Pier 1 Imports CEO Alex Smith's sobering remarks. The home furnishings retailer's stock slumped as much as 18 percent in its biggest daily percentage drop in almost five years on Thursday after its second-quarter profit and sales missed Wall Street expectations. While profit was partly hurt by increased online spending, increased storewide promotions were the big culprit that hurt margins. 

Customers are angry at Hudson's Bay after the company cancelled some of their online orders, purchased at a deep discount by combining multiple rebate codes. Over the weekend, customers were sharing the discount codes on popular consumer forums such as Redflagdeals.com. Customers said they were able to purchase items at a major discount. In one post on RedFlagDeals.com, a user said he was able to purchase a Vitamix blender that regularly sells for $530 for 45 percent off. 

Amazon.com is taking on Walt Disney Co. and its superheroes in a quest to gain more control over pricing online. Amazon blocked pre-orders of Disney's summer hit movie "Captain America: The Winter Soldier" and other titles in disk form, repeating a tactic used in recent disputes with book publisher Hachette and film studio Warner Bros. The move signals that Amazon, the world's largest web retailer, is increasingly willing to keep certain items from consumers to put pressure on its vendors.

Retailers have been changing product prices depending on supply and demand, weather, and many other variables for years. So why is dynamic pricing becoming such a hot topic now? What are the implications for individual brands as retailers raise the bar on their dynamic pricing capabilities? Who's doing a good job, and who's not? Check out this feature to get these answers and more. 

Staples is sweetening its price-matching offer for back-to-school shoppers. The Framingham, Massachusetts-based company, which like several other key rivals already matches prices of retailers including Amazon.com, plans to give customers 10 percent off the difference between its price and the competitor's price for an identical product. The offer starts on June 29 and will end the first week of September. Staples will also feature weekly deals and everyday low prices on 30 back-to-school essentials such as 17 cent single-subject notebooks. The moves will build on its new brand tagline, "Make More Happen."

Coach, the largest U.S. luxury handbag maker, will begin discounting purses at its North American full-price stores, breaking from tradition to combat sluggish sales and mounting competition. Coach will offer goods on sale twice a year — in June and January — said Andrea Resnick, a company spokeswoman. New York-based Coach had been one of the few fashion and luxury industry companies that refused to discount goods in its domestic stores. The move is consistent with what Coach already does overseas.

Hibbett Sports has one simple philosophy: it's all about the customer. Though the sporting goods retailer has grown to more than 900 stores in 31 states, it retains a strong local focus in each of its markets, including fan apparel for college and professional teams specific to each of its markets. Hibbett Sports targets its merchandise to ensure that consumers in each market will find exactly what they're looking for. Beginning at the local store level, the retailer chooses a selection of sporting goods designed to meet the demand of the customers based on their locations.

Wal-Mart is trying to shake up the world of pricing once again. The retailer told The Associated Press that it's rolled out an online tool that allows shoppers to compare its prices on 80,000 food and household products to those of its competitors. The world's largest retailer began offering the feature that's called "Savings Catcher" on its website late last month in seven big markets that include Dallas, San Diego and Atlanta. The move by Wal-Mart, which has a long history of undercutting competitors, could change the way people shop and how other retailers price their merchandise. 

Black Friday might be the most hyped (and most frenzied) shopping day of the year, but newly released data suggest discount hunters may well find better deals on Presidents Day from the comfort of their own laptops. Personal shopping site Shop It To Me analyzed more than 1 million sale items available online from Jan. 1 to Dec. 31, 2013, and found Presidents Day was the best holiday to buy, with an average discount of 47 percent off on that Monday. By way of comparison, Black Friday online retail sales averaged 44 percent off.