A recent study of showrooming activity is more bad news for retailers that subscribe to the conventional wisdom that mobile is a threat. But a couple of forward-thinking merchants -- Nordstrom and Best Buy -- are looking to use mobile to their advantage.
Some 43 percent of consumers showroom, according to a Harris Poll released this week. Best Buy and Walmart are the most popular showrooming destinations (24 percent and 22 percent). And Amazon is the most likely beneficiary of showrooming; more than half of showroomers said that's where they buy (57 percent), according to the poll.
Showroomers spend an average $211.80 per purchase.
But retailers aren't taking the competition lying down. In the latest effort to make brick-and-mortar shopping more attractive, retailers are tossing cash registers onto the junk heap, replacing them with mobile devices, according to a report on NPR.
The benefits: Mobile associates are more convenient than asking consumers to stand in cash register lines. And no cash register lines means less time for customers to change their minds about buying products and walk out. Also, mobile technology is often less expensive than traditional PoS, and removing cash registers frees up real estate in the store.
Nordstrom is a leader in this trend. It's replacing cash registers with modified iPod touch devices containing barcode scanners and credit card readers. When a customer finds merchandise they're ready to buy, a sales associate simply swipes the bar code and credit card, the customer signs with a fingertip, and is good to walk out the door.
"We think the days of the big clunky cash register... anchoring down a department are really going away," Nordstrom spokesman Colin Johnson told NPR.
And mobile is key to turnaround plans for Best Buy, says Stephen Gillett, the company's new VP of digital, global, marketing, and strategy, told Wired.
"We have a range of opportunities," he says. "There are challenges, but I like the set of cards I have been given."
Best Buy is closing stores -- a process that is limited by long-term leases. And the company is looking to turn remaining stores into an advantage by striking at mobile commerce's Achilles' heel. "People want to try before they buy, and they can't do that on Amazon," writes Wired.
And Best Buy marries its brick-and-mortar presence with its own online business. By revenue, it's the 11th largest e-commerce site, at about $3 billion per year. "That's a fraction of Amazon's electronics business and just 6 percent of Best Buy's total revenue, but it's growing by 15 to 20 percent every quarter," Wired says.
Retailers like Best Buy and Nordstrom are showing the way to beat showrooming. Instead of running away from mobile competition, retailers need to embrace it.
@Mitch - customers really aren't using the roving cashiers at Nordstrom - and they have had their roving cashiers for more than a month. The last two times I shopped there I used the roaming cashiers to epurchase. They scanned my purchase, ran my card and emailed me my receipt -- all in less than a minute.
Both times there were significant waits to check out. The last time I planned my epurchase so that the transaction occured right in front of a line of customers waiting to pay. I thought maybe I could inspire someone else to try this new way, but every single customer stayed standing in line to wait for a turn with the traditional cashier.
@Mitch - if the shift is to a 'waiting point' to cash-out, isn't that just shifting the normal checkout lane to a different location? Department stores already function this way. As well, depending on the store, you may need more staff to adequately address customers wanting to checkout, which increases overhead, something that many brick-and-mortar establishments are trying to avoid.
I'd think it's good for the customers, as well. It might be bad if you're a customer who's an exclusive showroomer, ie. you prefer to buy online for some reason (the lower prices). Other than that, the whole process of doing away with clunky cash registers seems more convenient for everyone all around.
Ryck Marcinak - You raise an interesting logistical point. Let's say I'm a customer. I know what I want. I have it in my hand. There isn't a sales associate available to help me. Where do I go to wait?
Maybe cash registers will be replaced by "waiting points" (merchandisers will give them a cute name -- I think "comfort station" is already taken and means soemthing else) where customers can wait for the next available associate, and associates can swing by to pick up customers.
We have a century of sales-floor etiquette evolved to deal with cash registers, and that will have to be re-created.
asanka.geek - What's the drawback from the customer perspective? Having more sales associates to help customers can only be a plus for the customer, right?
I think one of the challenges for retailers that adopt this mobile POS strategy will be to have enough staff to handle the customer volume. If you think about shifting the existing wait lines at a POS station to the retail floor, the retailer may need to add staff, which adds to their operational expenses for the brick-and-mortar establishment.
Mitch I see this as a plus point since it will definitely increase the productivity. True it may be a drawback if you look at it from the customers perspective but as an employee it will be a good turnover.
Ryck - I know that Best Buy checks your items as you exit the store, and they initital the receipt, noting that you have already taken your product...
Which is possible a contributing factor -- albeit a small one -- to the demise of brick-and-mortar retailer. Honest customers don't like to be accused of being crooks. They don't even like a suggestion they might be crooks. (When I pass through a door like that, I often cheerily say, "No, thank you!" and just walk by.)
Like Scott Kinoshita said, it might be harder to pull a fast one with mobile checkout. For one thing, now every employee who would have been clustered at a checkout area is now roaming the store, keeping their eyes open for customers who need assistance -- and potential shoplifters.
RyckMarciniak - And then there's Nordstroms, which bombs the customer with great customer service. Sure, you may be able to buy that shirt online but why would you want to when you can get it at Nordstrom and the salesman might suggest a tie to go with it too?
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