Retail Reality

Mind The Store

The Showrooming Effect

By: Leslie Kelley Mon, 06/24/2019 - 02:38

What comes to mind when you think of a showroom? A car dealership, or a store that has products displayed and showcased? Not in 2019.In the past, showrooms were associated with big ticket items and are set up to look like homes or familiar environments. Those types of showrooms still exist. But, as with much modern vocabulary, the term has morphed and has another meaning that is becoming increasingly relevant in marketing and customer behavior.

"Showrooming" is when a customer goes to a brick and mortar store to look at a product in person, decides they want it, and then completes the purchase online instead of in the store. Wayfair has picked up on the trend – its first physical store will open in Natick, Massachusetts in the fall of 2019. The company plans on a wider presence with pop-ups, showcasing their in-store design team to help shoppers make better decisions about the types of products they fill their homes with – and giving those consumers that experience they crave that is missing from Wayfair’s online platform.

How can you combat the showrooming effect on your brand?

The key is to make certain your brand’s in-store presence is seamless. Inventory should be fully stocked and merchandised well. When customers come to check out your product, it isn’t just about an in-store purchase, but also likely an online one, too. But do you have that type of physical store visibility?

You would if you partnered with ThirdChannel. A large sportswear brand that worked with ThirdChannel had a 46% lift in sales when marketing and pricing signage was appropriately placed and inventory was checked. Other ThirdChannel solutions can provide data, analytics, and actionable insights from your sales floor. When you know what a shopper is doing in the store, your brand benefits.

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