Retailers battle showrooming trend

The increased popularity of smartphones, laptops and tablets has changed the way consumers shop for goods. While many shop online without ever setting foot in a store, many more are taking part in a practice known as "showrooming," a technique retailers are trying to curb in order to increase sales.

The popularity of showrooming
As more products are made available online, consumers are increasingly browsing brick-and-mortar stores to look at and test the products they are interested in, then using their smartphones to search the web for reviews, similar merchandise and better prices.

Internet Retailer reported on an IDC Retail Insights survey that revealed this holiday season, 48 million shoppers are expected to use their mobile devices to research products while shopping at another store. This number is a 134 percent increase from the number of people who engaged in the practice in 2011, meaning the prevalence of showrooming is increasing quickly, and consumers are taking advantage of the technique to save on all types of goods. The most popular items for customers to showroom are electronics, apparel and footwear, but many do their research on basic purchases as well, such as groceries.

Showrooming can save consumers money and lead them to find valuable information about a product, therefore, it isn't a habit they're likely to cease anytime soon. However, retailers are attempting to cut down on the practice in their stores, as they can lose out on sales to other merchants or ecommerce websites that offer better deals.

Preventing the practice
Retailers are frantically trying to implement policies that will curb the popularity of showrooming in their stores to ensure consumers spend money at the brick-and-mortar location, rather than losing money to an online retailer such as Amazon. Many are increasing the customer service experience by giving employees tablets and smartphones with the ability to complete quick transactions at any point in the store. This means customers don't need to wait in long holiday lines or search for a register, and decreases the time they could spend seeking out a cheaper price online.

Merchants concerned about cutting prices even further to keep consumers from finding a better deal are sometimes switching up their retail supply chain by streamlining their logistics processes and finding cheaper suppliers to cut costs and lower their prices. With the advent of increased price comparison for consumers, it is essential for retailers to ensure their supply chains and sourcing practices are as cost-effective as possible so they are able to provide consumers with the best possible deals.