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Mall becoming cheaper than Amazon

Posted By -NO AUTHOR- On 08/20/2013 @ 1:39 pm In Money,U.S. | No Comments

(WALL STREET JOURNAL) — You might think the biggest challenge for Amazon founder Jeff Bezos is figuring out how to make money running a print newspaper, but here is a risk hitting much closer to home: Brick-and-mortar retail stores are becoming cheaper than AmazonAMZN +1.15%.

At least one store, that is. Prices at Bed Bath & BeyondBBBY +1.84% were on average 6.5% less than at Amazon for a basket of 30 items chosen by analysts at BB&TBBT +0.92% for one of their periodic pricing studies comparing the retailers. “We are becoming increasingly concerned Bed Bath & Beyond is sacrificing gross margin in order to drive top-line growth,” BB&T said — that is, increasingly concerned that Bed Bath & Beyond is starting to behave more like Amazon.

One big factor helping Bed Bath & Beyond are the 20% off coupons it regularly sends to its customers. Once you adjust for those, the price gap widens out to 25%.


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