Best Buy cuts holiday prices

City A.M. Reporter
BEST Buy is cutting prices for the holiday season to thwart fierce competition from Wal-Mart and other discount and online rivals, a move that it warns will hurt margins for the current quarter.

Yesterday’s news took some momentum from Best Buy’s stock, one of this year’s hottest, sending the shares down nearly 11 per cent. But many Wall Street analysts said the strategy is needed as Best Buy, the No1 US consumer electronics retailer, battles to stay relevant and tries to change the perception that its prices are higher than those of many rivals.

Earlier, Wal-Mart Stores had promised to match select Black Friday offers on toys and electronics from rivals Target, Toys R Us and Best Buy, starting as early as later this week.