Click and Mortar Retailers

A good amount of press has been written about how traditional retailers are struggling in the face their online competition.  This has particularly impacted Best Buy.  Consumers simply go to a Best Buy store and engage in what's called "showrooming".  That's a new word for me but basically consumers try out the product in the store.  It could be a flat screen television or a new blu-ray player.  From the consumer's standpoint, the important thing is that she can test the features of the product before committing to a purchase.  Does Best Buy get the sale?  Err, no.  The reason is because companies such as Amazon.com often have better prices.  In this NY Times article, the practice is examined and solutions are also mentioned.  Other retailers such as Sears and Wal-Mart have taken a different tack with their online sales.  These other retailers allow customers to pay with cash or a cheque at an actual retail store.  They can also pick up the items in-person to save on shipping costs.  This is all based on a "click and mortar" model.

One element left out of the Times article is the cost of items being purchased on Wal-Mart and Sears.  Are these big ticket items or smaller things?  Also, is the price differential from retailers (on some items) versus Amazon all that great?  Meaning if you're buying kitchen towels, it's a completely different experience than buying an HDTV or a laptop computer where many consumers insist on the latest items.  If some kitchen towels sit on a store shelf for six months or even twelve months, they can still be perfectly serviceable to a customer.  Still, having excess old inventory on the shelves isn't necessarily good for a company's bottom line.  As a result, many retailers have sales that represent good value for consumers while removing excess inventory.  While this strategy can work fine for some items, it's harder with tech items that change so frequently in ways that consumers perceive as significant.  Until next time, catch me in the library.