Dec 21 2021
More than half (53%) of Walmart shoppers made a purchase from Amazon within one day of in-store shopping at Walmart, compared with 38% of Target and Costco shoppers, according to a to study of the numerator.
The results come from Numerator’s TruView consumer panel which measures market share across in-store, online and emerging retail channels. The study aims to “quantify the showrooming effect”, or when a consumer goes to a store to see and touch merchandise, only to buy from a competitor online, often at a lower price..
Other key findings from the report:
- The Amazon crossover is substantial: About three-quarters of buyers from large retailers also buy from Amazon.
- Target has the greatest opportunity to capture the day of lost sales: By preventing leaks of same-day travel to Amazon, Target has the potential to capture 10.3% more sales, followed by Walmart (+ 7.2%) and Costco (+ 4.7%).
- General merchandise items make up the majority of “disclosed” sales to Amazon. The top four categories of leaks (home and garden, electronics, health and beauty, and clothing) accounted for more than half of all dollars leaked at each retailer.
Dozens of articles in the early 2010s cautioned against the threat of showrooming for physical retail, but any loss of in-store sales to online competitors was eventually offset by the reverse practice of webrooming (buying online, buying in-store).
However, showrooming does exist. A 2019 to study from Conversant found that 78% of Millennials and Gen Zs buy in-store and online simultaneously, and are 34% more likely than older customers to use a mobile device in a store.
Tactics to reduce showrooming include aligning prices and emphasizing a multi-channel offering. Retailers are also recommended to try to provide a more sensory experience, improve mobile in-store engagement, and reduce friction at checkout to make the in-store experience less transactional and discourage purchases. price comparison.
A study co-authored by Marshall Fisher, professor of operations, information and decisions at Wharton, concluded that knowledgeable associates are a primary arsenal against showrooming. He said Knowledge @ Wharton, “I think customers often don’t plan on going to a showroom, but end up buying online because they get better information online than in a store. “
DISCUSSION QUESTIONS: At this point, is showrooming a major, minor, or non-existent issue for retailers? What measures make it possible to reduce or better promote in-store practice?
“I wouldn’t classify that as a problem – it’s the cost of doing business these days. While consumers shop around (which is easier online), people generally cross-shop as well.”
“… customer-centric strategies could be used to enable their brands to participate in the showrooming process. “
“Truly bringing the ease of e-commerce to in-store experiences is the one thing exclusively online retailers will never have. “