"Showrooming" not a worry for retailers

NEW YORK: Over three-quarters of US retailers think "showrooming", where shoppers compare products in stores and buy them online, is not a "threat to their business", new figures show.

BDO, the professional services firm, surveyed chief financial officers from 100 leading chains, and revealed 88% of the sample did not regard this trend as a "threat to their business".

"Showrooming is not a fad or something that is just cool to do for the moment and will pass," Stephen Wyss, a BDO partner, told NBC. "Retailers are focusing on that customer experience and customer service aspect that many consumers will value, the key is how much will consumers value it over a bottom line price."

A quarter of the panel stated that improving service was a central tactic for countering the rise of this habit among buyers, and 25% hoped to expand the options for in-store pick-up and returns.

Launching exclusive goods recorded 17% on the same metric, a score matched by ensuring the prices available in their physical outlets were the same as those provided by ecommerce platforms.

Toys "R" Us, the toy chain, has followed the former model, rolling out the Tabeo, a tablet device for children, commanding $149.99, and pre-loaded it with a range of books, games and educational apps.

"It is our strategic position to offer products that you can't find anywhere [else] or be compared on price," said Troy Peterson, the company's divisional merchandise manager, electronics and entertainment.

In January, Target, the mass merchandiser, outlined plans to sell unique lines and compete with web-based rivals on price terms, but added it would not let digital players use its stores "as a showroom".

Wes Woolbright, national pricing director at Safeway, added: "Another dynamic that plays into both the mobile and online space is trust. A brick and mortar environment presents a greater opportunity to get some certainty about the purchase that's being made. Another dynamic is the 'element of now.' If I'm in a store I can pick up the item immediately."

Separately, 21% of executives polled by RetailWire said showrooming and price transparency were their "number one concern". A further 41% of firms ran the same prices on all channels, and 49% varied them.

When ranking the industries which had been most affected, 41% selected specialist chains like consumer electronics and office supplies. Luxury goods logged 18%, while department stores secured 15%, as did grocery, drug, mass merchant and discount stores.

Stephen Gillett, president of digital, global marketing and strategy at Best Buy, said it tracks "what is selling online, what is selling in the store, what is selling with the competition", and may cut prices "to make sure that we are competitive across those categories."

Data sourced from BDO/RetailWire; additional content by Warc staff, 8 October 2012

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