Mobile Prompts Shoppers to Abandon Brick and Mortar Locations for Online Deals (AMZN)
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Brick and mortar retail locations have a big advantage over online shopping: customers can touch the merchandise. However, if a better deal is available online, shoppers will not hesitate to walk out the door. According to a report today by GroupM Next, 45 percent of shoppers will leave brick and mortar locations for online discounts as low as 2.5 percent. For a 5 percent discount, 60 percent of shoppers will opt to make their purchases online. For a 20 percent discount, most (87%) shoppers are long gone.
Due to the popularity of mobile devices, consumers are changing their habits, and it is a trend that is set to continue, thinks GroupM Next CEO Chris Copeland.
"Consumers have shifted their path to purchase to include the store as a step, but not necessarily the final step; and this will likely continue to increase over time. Brands need to think about how showrooming can be used to their advantage to navigate would-be buyers to a checkout location, be it in-store or online," said Copeland.
As one of the largest online retailer, Amazon.com Inc. (Nasdaq: AMZN) might be in a position to benefit most from the trend. On the other side, Best Buy Co. Inc. (NYSE: BBY) has suffered from "showrooming" for online retailers.
Share of Amazon are higher by 34 percent year-to-date.
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Due to the popularity of mobile devices, consumers are changing their habits, and it is a trend that is set to continue, thinks GroupM Next CEO Chris Copeland.
"Consumers have shifted their path to purchase to include the store as a step, but not necessarily the final step; and this will likely continue to increase over time. Brands need to think about how showrooming can be used to their advantage to navigate would-be buyers to a checkout location, be it in-store or online," said Copeland.
As one of the largest online retailer, Amazon.com Inc. (Nasdaq: AMZN) might be in a position to benefit most from the trend. On the other side, Best Buy Co. Inc. (NYSE: BBY) has suffered from "showrooming" for online retailers.
Share of Amazon are higher by 34 percent year-to-date.
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