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Showrooming Gets Complicated: Assessing The 'Amazon Risk' Is Not So Simple - 02/28/2013
" it turns out that according to Placed’s “Retailer Risk Index,” Bed Bath and Beyond, Petsmart, Toys R Us, Best Buy and Sears are the top five retailers most at risk from people showrooming at their physical locations and then buying via Amazon because these are the places admitted that Amazon showroomers tend to frequent.
-- retailers like Best Buy, Home Depot, Lowe’s and Sears are the most at risk from males showrooming, versus Kohl’s, Petsmart, Bed, Bath & Beyond and Marshall’s most at risk among women.
Cut the showroomers yet another way and the high spenders at Amazon tend to visit Victoria’s Secret, BJs, Bed Bath and Beyond, Toys R Us and Costco most often."
Via k3hamilton
Showrooming Symptom Not Disease
Showrooming, the act of using someone's bricks and mortar as a prompt and tactical supplement to shop for better prices online, is a symptom of a larger issue not the disease itself. The disease is stagnant pricing policies at retail and an intelligent use of technology by the few who will become the many.
Price has always been a battlefield for decades. Walmart forced prices down by treating manufacturers like so many children in need of a stern father. Walmart played Logistics Lord and used their distribution powers to hammer manufacturers.
Next Amazon used their partner network to make their profits and provide massive information about customer preference and potential product movement. Amazon is willing to lose money on product X, any product with sales velocity, to "advertising" the rest of their distribution ecosystem.
When an "old school" retailer like Sears steps into the price battle they get hammered. At a conference I heard about a battle between amazon and Sears. In one day Amazon present 15 different prices on a product while Sears continued to get under bid.
I would have more sympathy for brick and mortar retailers if they weren't so complicit in their own demise. Instead of embracing technology and "showrooming" they deny, obfuscate and attempt to limit. Those actions become the proverbial gasoline on the fire. Tell this next generation they can't compare prices with smart mobile devices and you are sure to increase that behavior.
Why not be smart and create new ways of thinking about pricing instead of toothless and meaningless "price guaranteew" when customers do all the work/ Why don't the retailers lead with honesty and openness? We consumers are sensitive and smart, or smarter than we were. Best move big box stores can make is to embrace US and the technology we love.
We don't want to HURT a retailer, but we do want to win the game. If I am in your store showrooming why not create a loyalty program that rewards my willingness to act as price bot for you? Why not put real teeth in your "price guarantee" and tie your systems together so notice is quickly shared and prices across your system reflect the findings of your "showrooming buzz team"?
These may not brethe RIGHT actions, but any program is better than sticking one's head in the sand and hoping a "signaling trend" such as showrooming simply goes away.