Tuesday, November 20, 2012

Majority of retailers expect 5% sales drop due to showrooming: report

As shoppers prepare to descend on their favorite stores this Friday as the holiday shopping season gets underway, retailers are preparing to greet them with deals that they hope will be too good to pass up.

 
Retailers are optimistic about their prospects this year, but they're arguably going to have to work harder than ever if they want to maximize their sales. The reason? More and more consumers are deciding to shop from home on Black Friday and Thanksgiving weekend, forcing retailers to hone their online and offline strategies.

The good news: those who get it right are likely to be rewarded, and the effort to develop omni-channel strategies may pay off well beyond the holiday shopping season. That's because according to a survey conducted by Edgell Network and eBay, 80% of retailers believe the showrooming phenomenon is real and expect it to impact their sales by an average of 5%.

Powerless

Of the 59 retailers polled, 70% of which had under $1bn in sales, nearly half indicated that they were effectively powerless to address showrooming, with just 12% saying that they had a showrooming strategy in place.

The good news: retailers are not without ideas. 60% of survey respondents pointed to price matching as an effective way to deal with the phenomenon. More than a third suggested that click and collect and seamless customer experiences could be fruitful, while more than a quarter mentioned providing sales staff with better, more timely information and in-store exclusives as techniques worth looking at.

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