The demise (predicted by many) of the Bricks & Mortar
retailer may be premature even if there is a rise (seen in our latest research)
in showrooming across lots of categories.
And although the art of showrooming takes hold for many looking for
online bargains and convenience, they often still require the re-assurance of
seeing the real thing!
With nearly a third of shoppers already admitting to
showrooming, it is vital that retailers react positively to ensure it is a
competitive advantage to embrace the concept.
Price is the key driver to online shopping, and the high street must
accept that the cost of carrying stock on the high street where rents are high
is a big competitive issue against online retailers. Beyond price though, the need for a shopper
to actually see and touch the product ensures that there is still a place in
retail for ‘real’ stores. We have
already seen shops in the US popping up where no product can be taken away from
store, but merely viewed and then ordered for home delivery.
Food retailers have an opportunity to develop propositions
around what we call ‘Now & Later’, where shoppers do their shop in-store,
selecting which items they take with them, and scanning those they wish to be
delivered later. This negates the
perceived issues with fresh amongst irregular online shoppers, and introduces
those that enjoy the in-store experience to the convenience of home delivery
and increased basket sizes.
It is virtually impossible for a shopper to be able to
survive effectively without visiting a store at some time or another, indeed in
our last online report only 0.4% of primary shoppers say they never visit a
store in person. The potential rise of
‘Click and Collect’ and something similar to our ‘Now & Later’ proposition
make stores fully relevant moving forward and not necessarily the ‘Ball &
Chain’ that many feel large store estates will become. Throw into the mix a good spread of Virtual
Reality where space is an issue, and I think we are seeing what the future may
hold!
See our latest report on Showrooming here.
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