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>> More informed purchases because people buy stuff online where it's easier to compare reviews. I was wondering about this forcing stores to provide more expe

>> More informed purchases because people buy stuff online where it's easier to compare reviews. I was wondering about this forcing stores to provide more expertise and more flexible inventory. In my town 2 stores in a specific industry went out of business 3 years ago and made a big deal in the papers about how too many people were buying direct from manufacturers instead of visiting their store. I had been to both stores, asked some questions about products, got dumb answers and bad attitude, so I went home and bought everything online. In the last 2 years, 3 new stores in that same industry, 2 of them MASSIVE, have opened up near by (one of them in the same strip mall), and are doing very well. The difference? When you walk into these stores the employees know what they're talking about and they VERY quickly adjust inventory based on current market trends. Now I make most purchases in one of these 3 stores and not online - because I can do research better by talking to them and I can get most things immediately. It's required bigger investment from the owners, but they have thrived where previous stores failed and blamed e-commerce. Doesn't work with a lot of commodities, but if you're in retail, I think it's clear you need to specialize and add value - and that requires more investment. Don't just be there and expect to keep existing.

suresk 9y ago
The risk with this approach is that you become a showroom for Amazon. I knew a guy who ran a shoe store and provided a high level of personalized service when selecting the right shoe for your feet, gait, use, etc. Hiring and training employees who were knowledgeable enough to do that, plus having to spend a lot more time with each customer, made it a lot more expensive to sell shoes, and when Amazon and other online retailers started offering shoes for a lot lower prices (because they didn't have to provide the same level of personalized service), he eventually went out of business because people would come into his store and have him help them find the right shoe, then go home and order it for 20% cheaper or whatever. If you are a consumer, it seems rational to go somewhere and try something on, get expert advice about it, etc, then go purchase it wherever it is least expensive. Why pay 20 or 30% more or whatever for the same thing? Some sort of unwritten social contract (this is usually the reason I don't use local stores as showrooms)? Time sensitivity? As a retailer who goes this route, you kind of have to pin your hopes on those things. Showrooming is a real problem, and retailers are faced with the decision of trying to add value and hope people end up buying there even though it costs more money, or trying to cut costs in every possible way to compete on price, and I don't know that it's an easy choice all of the time.

suresk 9y ago

The risk with this approach is that you become a showroom for Amazon. I knew a guy who ran a shoe store and provided a high level of personalized service when selecting the right shoe for your feet, gait, use, etc. Hiring and training employees who were knowledgeable enough to do that, plus having to spend a lot more time with each customer, made it a lot more expensive to sell shoes, and when Amazon and other online retailers started offering shoes for a lot lower prices (because they didn't have to provide the same level of personalized service), he eventually went out of business because people would come into his store and have him help them find the right shoe, then go home and order it for 20% cheaper or whatever. If you are a consumer, it seems rational to go somewhere and try something on, get expert advice about it, etc, then go purchase it wherever it is least expensive. Why pay 20 or 30% more or whatever for the same thing? Some sort of unwritten social contract (this is usually the reason I don't use local stores as showrooms)? Time sensitivity? As a retailer who goes this route, you kind of have to pin your hopes on those things. Showrooming is a real problem, and retailers are faced with the decision of trying to add value and hope people end up buying there even though it costs more money, or trying to cut costs in every possible way to compete on price, and I don't know that it's an easy choice all of the time.