Best Buy, Target Startle Investors With Plans to Overhaul Chains
- Retailers are revamping strategies to compete with Amazon
- Target CEO Cornell says industry is undergoing ‘seismic shift’
Why Target Is Mimicking Wal-Mart’s Pricing Plan
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Brick-and-mortar retailers are increasingly acknowledging the need to make big changes if they want to keep shoppers in their aisles and away from Amazon.com Inc. But the cost of modernizing the chains has alarmed investors.
Best Buy Co. and Target Corp. saw their shares tumble in the past two days after announcing plans to overhaul their operations. Though Wall Street analysts agree that the changes are necessary, with traditional retailers facing a do-or-die moment, it’s not clear how much appetite shareholders have for the costly investments that lie ahead.