Will ‘Showrooming’ be a big trend for 2013?

Smartphones are changing the way we shop. With an increase in internet-enabled phones and savvy shoppers always on the look-out for a bargain, a new retail revolution is taking place. 

‘Showrooming’ is the term used to describe the new trend of shoppers browsing products in store and then searching for them online in order to find a cheaper price. So worrying it is becoming for brick-and-mortar stores, that many are having to rethink their sales strategies to discourage people from using them just as a catalogue for Amazon (or other online retailer).  

 

Mobile internet data is currently tripling each year in the UK, with a forecast of a 26-fold increase by 2015, and m-commerce  growing around 30-40% a year. Electronic items are most likely to be searched in-store and then bought online. Shoppers can still ask questions in-store and get advice from sales assistants but then go and find it cheaper elsewhere. 

In order to counteract this, retailers are having to come with ways of encouraging shoppers to buy in-store. Some are selling items that aren’t available online, reducing their prices, and using click & collect to encourage in-store footfall. 

Source: McKinsey Global Institute

QR reader apps such as RedLaser allow shoppers to scan the barcode of a product and find out who is selling it at what price – removing any need for the shoppers to search around for the best possible price. In order for retailers to stay ahead here, they should have a good mobile-optimised site, and most importantly, have well-informed and helpful staff who are as knowledgeable about products as the information that can be found on the website. 

 

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What are the Benefits of Click & Collect

Online shopping is ever increasing, with more and more shoppers choosing to purchase items from the comfort of their home, rather than facing the hustle and bustle of town centres and supermarkets. The benefits of online shopping are clear – it’s easy, convenient, can be done at any time day or night, and you don’t even have to get out of your PJs. 
 

The online channel is increasing year-on-year for Food & Grocery shopping as shoppers make use of the convenience of this channel. For families in particular – children don’t have to be dragged around the supermarket and mums and dads aren't forced to juggle a baby, shopping bags, and an umbrella all at the same time. The food is delivered to the door (even to the kitchen table in some cases). But of course, as with anything, online shopping isn't flawless. Shoppers complain about delivery charges, missed deliveries, and substitutions, amongst others. That’s where Click & Collect comes in.

 

Click & Collect works initially in the same way as normal online shopping – the shopper goes online and chooses their items, and proceeds to the checkout. However, instead of the items being delivered to the shopper’s home, the shopper picks them up outside of the home.
 

You might think, what is the point in that? Well, as we’ve mentioned, there are issues with standard online shopping. With Click & Collect the charges are much lower, and in some cases the service is free of charge. This is a great advantage as Evolution found that in 2011, over 50% of shoppers cited the cost of delivery as a barrier to online shopping.

 

Also, shoppers don’t have to wait around for delivery. Many find the delivery slots offered to be too large of a window and un-flexible. Either the shopper has to set aside a large portion of the day in which they can’t leave the house, or if something comes up, they can’t change the time. With Click & Collect, items are stored for collection at a time that suits the shopper. All they have to do is turn up and the rest is done for them. This still eliminates the trouble of in-store shopping, but does allow them the option of nipping in-store if they have forgotten any items, or just want to check out the offers.
 

Of course standard online shopping is still a better option for some shoppers (those without a car, for example), and the system is still in its relative infancy, but at Evolution we see great potential for Click & Collect in the future.  Our latest research in France highlights the advanced nature of this model compared to here in the UK. For shoppers opinions and further insights into Click & Collect, please see our 2012 report on this subject.

 

Click & Collect Becoming a Popular Option Amongst Shoppers

1 in 3 shoppers think that ‘Click & Collect’ is a good idea for online grocery shopping. Recent research has found that despite the current low levels of usage of this new service, the potential of it is high.

Considering that the option for click & collect has been available from some retailers for a decade now, it may be surprising that over half of shoppers have still never used the service. However, it has only recently become a widespread amenity amongst retailers, with new marketing campaigns advertising this type of online shopping. In fact, a quarter of shoppers already say that they use it occasionally, which shows the opportunity this service has in retail. 

 

Click & collect for grocery shopping is a very new concept. Many retailers do not offer this service and those that do, do not offer collection from their full range of stores. We can’t then be surprised that adoption of click & collect is still relatively low. We expect that as the features of the service becomes better known and understood amongst shoppers, uptake of this service will increase.

The idea of a Click & Collect service not only appeals to current online shoppers, but to in-store shoppers also. Considering that the main issues with standard online shopping fall into the category of delivery, if Click & Collect can successfully overcome these issues there is no reason that it cannot become as popular, if not more so, than having orders individually delivered to shoppers homes. 

The proportion of shoppers that have used Click & Collect is currently around  48%. In the above diagram we can see that the highest users live in Scotland and the South West, and the lowest uptake is in Wales and Northern Ireland.