Retailers Hit by Growing Consumer Trend

by Angela Nazworth | April 12, 2012 11:21 am

Big-box retailers Target (NYSE:TGT[1]) and Wal-Mart (NYSE:WMT[2]) are upping the ante to combat “showrooming.”

The new trend of shoppers price checking merchandise in stores only to later buy them on competitors’ websites is a bottom-line buster for discount giants. The Wall Street Journal reports[3] that half of shoppers who buy products online had previously scoped the items at a traditional store.

Of course, consumers won’t be hearing any complaints from retailers, such as Amazon (NASDAQ:

AMZN[4]), that only sell their wares online.

In an effort to increase customer loyalty and thwart showrooming, many brick-and-mortar discount giants are making some online and in-store deals of their own.

Target offers a few exclusive products that can only be purchased in its stores. It also offers items that customers will only find at Target.com. Additionally, a new smartphone app allows Target shoppers to create shopping lists and receive exclusive coupons and deal alerts.

Wal-Mart hopes that its strategy to team its online and traditional stores will bolster revenue. The discount king places emphasis on free in-store pickups for online orders. According to the WSJ, Walmart also instituted the “endless aisle” strategy where its associates refer shoppers to Walmart.com when a desired item cannot be located in the store. To ward against its workers viewing Walmart.com as a competitor, the company has set up a system that allows store workers to receive bonuses for successfully employing the strategy.

Another big-box store hit hard by showrooming is struggling electronics retailer Best Buy (NYSE:BBY[5]). The company is banking on new leadership[6] to help it survive this new trend — as well as other hefty challenges.

Source URL: https://investorplace.com/2012/04/retailers-hit-by-growing-consumer-trend/

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