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Rescooped by Nikola Pohlupkov from Ecom Revolution
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How Kmart Out Showroomed Itself In Hey Whatever Works Ecom Category

How Kmart Out Showroomed Itself In Hey Whatever Works Ecom Category | Social on the GO!!! | Scoop.it
Last weekend, I decided to head down to my local Kmart to buy a new slow cooker so that I could make some chili. I found a Hamilton Beach model that looked good, but it was a bit on the pricey side (relatively speaking), with ...

Via Martin (Marty) Smith
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Martin (Marty) Smith's curator insight, December 12, 2012 9:26 PM

Great story here of a showrooming customer finding the lowest price in the store he was standing in. The faster brick and mortar get the idea that there is no pricing firewall, thanks to mobile, between bricks and clicks the faster they GET IT and understand how to price in order to win loyalty even if it is goofystupid loyalty as is described here (lol). 

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How Bricks Can Stop Showrooming By Clicks (Amazon) - Better Retailing

How Bricks Can Stop Showrooming By Clicks (Amazon) - Better Retailing | Social on the GO!!! | Scoop.it
As the shopping environment is becoming more complicated, companies will have to negotiate compounding and growing multi-channel and multi-company “value poaching” challenges , illustrated by the following articles: In a 2003 Harvard...

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Martin (Marty) Smith's curator insight, December 7, 2012 7:34 AM

Friction will need to come OUT of the retail experience for it to stay competitive. Showrooming is more about dissatisfaction with the retail experience as a desire to save. Showrooming is an active protest.

No one showrooms the Apple store because the shopping experience is fun and traditional friction has been removed. Types of retail friction the Apple store destroyed:

* LINES - no lines creates a perception of amazing service.
* Brick and Mortar as classroom.

* Hang Out - all that free WiFi and cool stuff going on.

* Service Concern - Genius Bar resolved this.

* Bad Service - lots of PEOPLE to help who enjoy their jobs.

* No Deals - Apple doesn't let Amazon destroy their brand.


This last bullet is harder than it looks. Since Amazon plays the price arbitrage game better, on one single day a recent speaker at the Raleigh Internet Summit noted Amazon changed a price on a hot product 9 times, creating a "price match" that eliminates the advantage is key.

The problem is Amazon uses its retail arm as lost leader to support profits from its partner network. This means it is willing to sell things, especially very HOT things, at or below cost.


As painful as it sounds to play a match game with an algorithm brick and mortar retailers must either get shelf talker/tags that are live to the net (coming don't kid yourself) OR create an "Amazon Price Match" promotion.