Showrooming
Showrooming is the act of examining merchandise in a brick and mortar retail store without purchasing it there, then shopping online to find a lower price for the same item. Online stores often offer lower prices than brick and mortar stores because they do not have the overhead cost.[1] Showrooming can be costly to the retails, not only in the loss of the sale, but also due to damage caused to the store's floor samples of a product.[2]
Showrooming was said to be behind Target’s decision to discontinue carrying the Kindle.[1]
Combatting showrooming
Many retailers have tried to compete with showroomers by slashing their own prices.[3]
Some major retailers, such as Target, are attempting to combat showrooming by selling products exclusive to their stores. Walmart is allowing customers to avoid the shipping charges of online purchases by picking up the items in the stores.[4]
References
- ^ a b http://content.usatoday.com/communities/technologylive/post/2012/05/is-showrooming-behind-target-move-to-drop-kindle/1#.T6Lq_RB5mSM
- ^ http://www.dailyfinance.com/2012/04/25/3-ways-to-beat-showrooming/
- ^ http://www.marketingmag.com.au/news/retailers-responding-to-showrooming-by-slashing-prices-12586/
- ^ http://online.wsj.com/article/SB10001424052702304587704577334370670243032.html