This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Showrooming: Retailers' Dreaded Profit Destroyer

Stocks in this article: BBBY BBY PETM TGT

The phenomenon of showrooming - in which consumers armed with smartphones show up at a store to check out a product, then buy the same item for lower price online - has been a real curse for major American retailers.

recent study by Deloitte Digital estimated that some $159 billion in U.S. store sales were impacted by the showrooming trend. That’s about 5 percent of total 2012 sales. By 2016, that figure could hit $689 billion, figures Deloitte.

Which major retailers are most vulnerable? Market research firm Placed recently conducted a survey and developed a list of retailers most impacted by showrooming and Amazon (AMZN).

The study found that consumers who showroom, then purchase on Amazon, are 20% more likely to visit Best Buy (BBY) and 15% more likely to visit Target (TGT) than average, but Bed Bath & Beyond (BBBY), PetSmart (PETM) and Toys ‘R’ Us all face greater risk.



Retailers are starting to fight back. Best Buy now matches the lowest price found at online retailers. Tom Gara at the Wall Street Journal has an illuminating story about how Best Buy, which just signed an ambitious partnership with Samsung, has rolled back the tide off showrooming. Left for dead not that long ago, the retailer's stock is also on fire this year.

BBY Chart

BBY data by YCharts

Finally, Statista and the American Association of Advertising Agencies put together this infographic that illustrates the showrooming trend in an interesting way:


Photo: BetterBizIdeas

The investments discussed are held in client accounts as of March 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.

The post Showrooming: Retailers' dreaded profit destroyer appeared first on Smarter Investing.


Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs