This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Is price matching good business or does it signal vulnerability?

Stocks in this article: AMZN SPLS JCP AAPL SHLD

By Robbie Citrino for Kapitall.

Staples (SPLS) has become the most recent retailer to institute price-matching in a bid to lure shoppers in for back-to-school shopping. Facing declining revenues over the past four years the office supplies retailer is using this margin-cutting tactic to win over potential customers.

But is price matching a sign of vulnerability? On one hand it seems good business sense to sacrifice margins for customers. But history tells a more complicated story.

In 2011  J. C. Penney (JCP) instituted a price-matching policy when Apple (AAPL) executive Ron Johnson joined the board. Since this change, the company has lost almost 74% of its market capitalization.

Sears (SHLD) is another struggling retailer facing competition from Amazon that brought price-matching to its stores in 2011. At the time the move was aimed at people coming in to look at items they intended to purchase online.

The company has since posted losses per share in every quarter, and their stock has dropped about 60%. This all happened despite the fact that the market rose during the period.

Countless others have fallen to online retail despite their price-matching efforts. Will Staples be a different story? Use the list below to begin your analysis and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 



1. Inc. ( AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $149.19B, most recent closing price at $324.20. 



2. Staples, Inc. ( SPLS, Earnings, Analysts, Financials): Operates as an office products company. Market cap at $7.24B, most recent closing price at $11.19. 


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs