In 2013, when Jessops, a well know British camera chain went into administration, one of the stores had this to say – “The staff at Jessops would like to thank you for shopping with Amazon". With that it became the first company to go under in 2013, though this was predicted it brought to light the increasingly worrying trend of online competition taking over certain markets eventually causing retailers to go under. Showrooming has been a known concept for some time in the new millennia. Though its impact and a methodology to tackle has only been seen and undertaken recently. In simple terms Showrooming means – The act of examining goods in a Bricks and Mortar store and purchasing them online. According to the Business Insider (www.businessinsider.com) a recent study in the US showed that while shopping in a Bricks and Mortar store, 67% of the customers compared prices online and around 62% of them left the store and purchased the product online. This problem is not restricted to small-time retailers alone. Best Buy Co - the largest electronics retail store – recently claimed that 40% of the customers entering its stores had no intentions of buying. This trend is what prompted predictions by several market analysts that Bricks and Mortar stores shall fade out by 2020. In order to preserve them, retailers shall have to reinvent themselves. Showrooming does not affect all sectors of retail. Items of small value are generally purchased in stores for the instant gratification of the customer. Electronic appliances is the sector worst hit by Showrooming followed by clothing, footwear, food and beverage and so on. The convenience available to customers from shopping online in these sectors like lowest prices, fast delivery to your door step, bonus offers etc are slowly making stores in these sectors obsolete. Further, with no overhead charges and being able to avoid sales tax in some cases allows the online stores to offer prices cheaper than any store...
References: http://en.wikipedia.org/wiki/Showrooming http://www.bbc.co.uk/news/business-20958659 http://www.forbes.com/sites/panosmourdoukoutas/2013/04/05/best-buy-gets-its-business-modelright/ http://www.businessinsider.com/how-to-fight-showrooming-2013-4 http://www.bbc.co.uk/news/magazine-22098575 http://www.guardian.co.uk/media-network/media-network-blog/2013/may/09/showroomingretail-solution-e-commerce http://mckainviewpoint.com/how-do-you-prevent-showrooming-at-your-business/ http://www.prdaily.com/Main/Articles/Retail_fail_Store_charges_browsers_5_to_prevent_sh_1416 0.aspx http://www.businessweek.com/articles/2012-06-18/dont-let-showrooming-sabotage-your-shop http://www.philipbeeching.com/2013/02/another-nail-in-to-bricks-and-mortar.html
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