Savvy shoppers who research items in-store and then buy them cheaper elsewhere are having a significant negative impact on high street retailers, a new report has claimed.
Almost 70 per cent of people in the UK admit to ‘showrooming’ - using stores as a way to view or try items, but not buy them, according to research by global research firm TNS.
Over half of showroomers admitted using their mobile to conduct price comparisons with rival retailers or to take a photo to help them decide on a purchase.
Classic showrooming: The practice is when shoppers try out a product in-store before buying online, often using their mobile phone to record information.The tactic is leaving traditional bricks-and-mortar retailers in the position of becoming merely 'loss-making display cabinets', the researchers said.
Government figures out yesterday showed that the UK economy has avoided a triple-dip recession, growing by 0.3 per cent between January and March this year. And while a strong February helped notch up growth in the retail sector by 0.3 per cent overall in the quarter, there was still a fall in January and March, doing little to aid the struggling high street.
More... Triple-dip recession avoided: UK economy pulls back from the brink to grow by 0.3% in the last quarter Love in the time of austerity - a date at Frankie & Benny's paid for with a discount voucher Get free cashback when you buy onlineThe ‘Mobile Life’ study, which was based on responses from 38,000 in 43 countries worldwide, showed that the UK has the biggest number of showroomers with 68 per cent of people using their phone in-store, more than twice the global average of 33 per cent.
Who is showrooming: The research shows that globally 33 per cent of people are doing it. With 21 per cent of them using their mobile phone.Matthew Froggatt, from the TNS, said,: 'People still want the reassurance of seeing a product before they buy it, but actually purchasing elsewhere means retail outlets are left as loss-making display cabinets.
'Rather than seeing mobile as a threat to in-store sales, brands and retailers must embrace it as the most immediate and personalised way to engage shoppers to ensure they don’t leave empty-handed.’
The report claims that shops are now trying to offer alternative services to customers in-store to distract them from buying elsewhere at a later date.
These include sending them mobile based offers, allowing them to check product availability in-store and apps which help shoppers navigate the shop floor to look for products.
Who is showrooming: A quarter of 16-30 year olds use their mobile when showrooming.The TNS claims that showrooming is now a 'global phenomenon', with 75 per cent of those in emerging Asia, 87 per cent in the Middle East and North Africa, admitting to the behaviour when shopping.
While those in developed markets, where online shopping is well established, are less likely to use their phones during a shopping trip – with only 55 per cent of shoppers in North America and 56 per cent in Europe.
The research also said that the 16 per cent of people check reviews or ask social media contacts whilst in-store to help them inform their decision making, with a quarter relying on recommendations from family and friends.
