“Showrooming” Killing Retail Stores? Best Buy, Pet Smart and Others Should be Worried

First, we saw Target discontinue the sales of the Amazon Kindle due to people “Showrooming.” That’s where people go into the store to check out a product, and then go online and buy it from someone else.

Other retailers have been trying to solve the problem, one even going so far as to charge people who are “just looking” $5. http://www.businessinsider.com/stores-charges-just-looking-fee-2013-3

Best Buy thinks they’ve got a solution to the problem: Match almost everyone’s price.


Good idea short-term, but it won’t work.  Unless Best Buy is able to provide a great service people want, Best Buy just won’t be able to grow their sales.  How can they possibly compete with online retailers who don’t have to pay for expensive retail space in malls, pay for expensive sales personnel/customer service reps, etc? Best Buy needs higher margins in order to stay in business. Even with their huge buying power, they just won’t be able to compete with the Amazons of the world.

Goodbye Best Buy.  I’ve really enjoyed our relationship.