Billions of pounds of sales ‘up for grabs’ over Christmas period as result of the convergence of online channels in retail stores driven by mobile adoption

Billions of pounds of sales ‘up for grabs’ over Christmas period as result of the convergence of online channels in retail stores driven by mobile adoption

A new study by experience design agency Foolproof has attempted to reveal the true impact of ‘showrooming’ on the UK High Street.

The research found that around a quarter of all UK shoppers used their mobile in a store to compare prices elsewhere in the run up to Christmas 2012.

Unlike other recent studies on this growing phenomenon, Foolproof’s research also gathered data on how consumers acted, once they had compared prices by mobile, with 40% of 1,000 surveyed by Usurv on 21 December 2012 saying they bought elsewhere as a direct result of showrooming.

Driving customers to competitors

In addition to finding that 24% of all UK shoppers ‘showroomed’ in the lead up to last year’s key festive trading period, 40% of showroomers (or one in 10 of all shoppers) said they bought items from a competitor – either instore or online – after comparing prices via their mobile when visiting a store.

Over 20% of people say they went into a store just to check out something they planned to buy online. And over a third (39%) of 18-39 year olds surveyed said that they actively engaged in showrooming over the period, compared to just 18% of shoppers over the age of 40.

Based on British Retail Consortium data, where £5 billion was estimated to have been spent on the UK High Street over the weekend before Christmas, the study determined that a 10% sales ‘leakage’ from showrooming activities would have meant that around £500m of sales were switched between retailers in the final weekend before Christmas Day alone.

Retail grows up with younger generation

Peter Ballard, managing partner of Foolproof, said that with one in 10 shoppers switching purchases from one retailer to another as a direct result of showrooming, “half a billion pounds of business walked out of the door to a competitor”.

He added: “The age profile data is especially interesting, with younger, more smartphone savvy shoppers being far more active showroomers than the older generation. This suggests that showrooming is here to stay and set to grow. The High Street needs to find ways of accommodating and embracing showrooming as part of the modern-day shopping process.”

Ballard advised activities to prevent showrooming losses can range from price-matching policies, offering a checkout and delivery experience that is slicker than going elsewhere and better integration of online and offline customer experiences.