Showrooming is a growing trend affecting many retailers today. Wikipedia defines it as â€œthe practice of examining merchandise in a traditional brick and mortar retail store without purchasing it, but then shopping online to find a lower price for the same item.â€ The proliferation of mobile devices and comparison shopping apps has made this practice easier than ever before. Shoppers do not have to leave your store in order to find a better deal – and even buy the product from your competitor.
This can be a scary idea for many traditional retailers. Online-only retailers have a lower cost of doing business, and can therefore offer the same products at a discounted price. Many small retailers are not eCommerce enabled, and cannot compete in this space.
GroupM Next and Catalyst have recently completed a survey and report titled â€œRetail Showrooming In Canada: Winning The Consumer & The Price Of Keeping Buyers In-Storeâ€. They surveyed 2,000 Canadian shoppers who were asked about various consumer products in multiple categories and at different price points and shipping times. The respondents were questioned on purchase choices related to pricing, buying from the store, and shipping options.
One significant statistic contained in this survey is that 37% of shoppers said they would leave a store to purchase online for as low as a 5% discount! If the discount moves to 20% off a whopping 73% of people said they would leave and order online. These are definitely statistics in-store retailers need to pay attention to. Retailers will need to be proactive in keeping customers in their stores and buying once they have come in.
The full survey, found here: http://groupmnext.com/research/ contains many more statistics, as well as ways for retailers to keep customers shopping in their store.
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