Showrooming is the practice of checking out products in a traditional brick and mortar retail store without buying it and then shopping online to get a lower price for the same item. Online stores usually offer lesser prices than their brick and mortar counterparts, because they do not have the same overhead expenses.
As depicted by the above Dilbert Cartoon, retail showrooming is are real, but not a laughing matter. Showrooming can be expensive for retailers, not only in terms of the reduction of the sale, but also due to damage caused to the store’s floor samples of merchandise by constant examination from consumers.
The cumulative lost revenue to so called Big Box retailers such as Best Buy is in the billions of dollars. Where does the revenue go? It goes to online merchants such as Amazon and others. Amazon is especially tough as their margins are bare minimum to gain market share.
In our latest research, Wireless Solutions to Improve In-store Sales, Optimize Shopper Engagement, and Combat “Showrooming”, we evaluate the situation and assess applications, solutions, and strategies to help retails stores become more competitive.
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