Monday, July 01, 2013

Window shopping and 'showrooming' is hurting retailers


Are you a showroomer?  To put it differently, have you ever gone into a shop to browse the shelves with the intention of buying from an online retailer?  If the answer is yes, you’re not alone.  You’re in the majority.

A new study by the Booksellers Association has found that two thirds of people scout for products in shops before heading home to buy online.  The process, known as showrooming, is harmful to bricks and mortars retailers, who have higher overhead costs which are passed on to customers.

Big online retailers such as Amazon are the clear beneficiaries, with customers using shops’ physical stock as a sample before going elsewhere to find the product cheaper.  The surveys’ respondents said they still find physical shops to be the best places to scout out new products, but were unable to resist the lower prices available online.

As many high street chains have recently been forced to close, it isn’t just book retailers who are suffering from showrooming.  The same also holds true for music, DVDs, clothes and even furniture, where customers like to see the physical product first before ordering online.

Something obviously needs to change if physical retailers are to stay afloat.  With everything available online – often at a better price – bricks and mortar retailers need to offer something which makes them more than simply a showroom for products to be bought elsewhere.  This could mean either dropping their prices (not always viable) or offering customers products and an experience worth a little extra paying for.

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