News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Store retailers could lose 5% of holiday season sales through showrooming
Eight out of ten retailers are affected by showrooming, according to new research from Edgell Knowledge Network, in partnership with Ebay, yet just 10% have strategies in place to limit its effects.
According to Gaurav Pant, research director at Edgell Knowledge Network, the act of using a mobile phone in-store to check competitors' prices is here to stay. "Showrooming", as it's called, can have an adverse effect on a retailer's bottom line if strategies aren't in place to limit its effect.
The report, "The Impact of Showrooming on the 2012 Holiday Season", reveals that 80% of retailers expect to be impacted by showrooming. They expect to lose, on average, 5% of sales to the practice. Electronics and appliance categories were expected to be the most vulnerable.
However, only a quarter of retailers surveyed supported full integration between their store and online channels, and only 15% share their inventory online - two reliable methods for retailers to lessen showrooming's impact.
"Showrooming is a phenomenon that's here to stay. One in four shoppers used their mobile phones to compare prices while in the store during the 2011 holiday season, and those numbers will only grow," said Gaurav Pant, Research Director, Edgell Knowledge Network. "But the good news is that retailers can put strategies in place to help counter the effects of showrooming by engaging showroomers actively, integrating their online and offline channels, and prioritizing their investments to counter showrooming."
Earlier this year, a report from Capgemini revealed how consumers across 16 mature and developing markets see the future of physical stores.
Over half (51%) of the 16,000 participants expect that, by 2020, many physical stores will exist primarily as showrooms, places to display products available for order by various other channels. Respondents from developing markets were more likely to hold this belief while a third of consumers in more mature markets think so.
- Expert: How to know if the cloud is right for your business
- Ad Roundup: Targeting, Payments and Data
- Studies highlight importance of location, relevance
- SMBs: New labor laws could impact revenue lines
- Ad Roundup: Mobile, video and ecommerce
- Expert: What Google, Amazon announcements mean for marketers
- Survey: SMBs keying into social
- Survey: Brands leaving app money on the table
Featured White Papers
- The 5 Principles of Engagement Marketing
In this ebook, we define each of those five principles, and show you what an engagement marketing strategy truly looks...