Retailers Dread Phone-Wielding Shoppers

Ponca City writes "The WSJ reports that until recently, retailers could reasonably assume that if they just lured shoppers into stores with enticing specials, the customers could be coaxed into buying more profitable stuff too. But now, marketers must contend with shoppers who can use their smartphones inside stores to check whether the specials are really so special. 'The retailer's advantage has been eroded,' says analyst Greg Girard, adding that roughly 45% of customers with smartphones had used them to perform due diligence on a store's prices. 'The four walls of the store have become porous.' Although store executives publicly welcome a price-transparent world, retail experts don't expect all chains to measure up to the harsh judgment of mobile price comparisons, and some will need to find new ways to survive. 'Only a couple of retailers can play the lowest-price game,' says Noam Paransky. 'This is going to accelerate the demise of retailers who do not have either competitive pricing or a standout store experience.'"

Comments

I did this

[fridaynightsmoke]

I used my phone to find the best prices when I was buying various white goods (fridge/freezer, washing machine, dishwasher) upon moving house, from a certain UK big-box electrical retailer.

Of course, the salesperson said "Oh no, we can't match internet prices" but it turns out that given a choice between a discounted sale and no sale, they can

Protip: You haven't got the best price until the salesperson has sheepishly had to ask the manager for authority twice.

It can also go the other way

[tixxit]

I'm in the market for a new TV, but haven't done any research. I see a TV in BestBuy that is on sale, compare the price to other stores, see it actually is a good price, then buy it. If I didn't have my smart phone, I would've gone home and did some research first, rather than buy it right there. That means I'm out of the store, and that most likely means a lost sale for them.

Similarly, I was at a (plant) nursery this last spring. I had the impulse to buy some plants for my house, but since I have a cat, I wanted to make sure I didn't buy a plant that was poisonous to cats. I whipped out my phone, went on the web, and researched the plants I liked, one-by-one, to find the ones that were cat safe. In the end I bought $100 worth of plants. If I didn't have my smart phone, then I wouldn't have bought anything.