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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.'"
'This is going to accelerate the demise of retailers who do not have either competitive pricing or a standout store experience.'
Be creative? Negotiate better wholesale costs so that you can offer your customers lower prices? If not, someone else will. Isn't that capitalism?
If a restaurant had better food, a nicer atmosphere and cheaper prices, wouldn't you frequent that place as well?
Fine by me.
Good riddance.
I used my iPhone and the Red Laser app to scan all the toys my kids wanted. It shows all the prices for the stores around me, as well as online. I got approached by at least one sales person asking me what I was doing, and Toys R Us specifically was not happy. I got approached by a floor manager after the sales person approached me, and he asked to see the app. He looked none too happy. Why in the world would I not check if I had the ability??
Wouldn't it be ironic if later stores started banning phone use in stores?
"We are afraid now that customers can figure out we are cheating them with false advertising, before we manage to snatch their money."
It's a good thing to give the customers more transparency in who they do business with, but I am concerned that this will reduce competition even further to price warfare. Quality, safety, environmental sustainability and the welfare of employees may take even more of a backseat than it already does.
Needless to say, this transparency is not the root cause or a bad thing. However, with shoppers caring more about price than anything else, it is vital to regulate industry and retail to ensure that companies do not rape their people and the environment to stay competitive.
Look, people shop around, they did before the internet, and they did before mobile phones. There is nothing any retailer can do to stop this.
Being grumpy at a customer for using the tools at their disposal to shop around more efficiently is simply driving that customer away. Treating your customer with respect, on the other hand, *might* make you a sale even if your prices aren't the absolute lowest.
A sales person calling over a supervisor to bother a guest in their store for price shopping is extremely disrespectful. You call over a manager for suspicious activities, or clear violations of posted store polices (non-service pets, inappropriate clothing) NOT because you are worried the customer might find out you don't have the lowest price and go shop elsewhere. They might have passed on a product at your store due to price, but now they almost certainly will because you harassed them. How is that a win for your store?