Best Buy hates being called "Amazon's showroom." Yet oddly, that insult may reveal a path forward for the struggling electronics giant.
Some analysts think Best Buy's long-term future might rely on turning its business model upside-down. Instead of specializing in selling electronics gear, it could gradually refocus its consumer-electronics business on everything but: instruction, service, support, connections, returns, pickup - all tricky things to do online.
But most of all, Richfield-based Best Buy could embrace being a showroom. That means welcoming price-checking shoppers into the store to play
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Retailers Fight Showrooming
April 25, 2012
A customer walks into your store and heads for the TV displays. He’s on a mission and spends the better part of an hour drilling the TV salesman on the pros and cons of a half-dozen big-screen sets, moving from one TV to the next. Eddie doesn’t hide the fact that he’s ready to buy and narrows his search to a 50-inch LCD.
He thanks the salesman for his time, and as he’s walking away pulls out his iPhone and slips into a corner to see if he can find a better price online. Amazon has the lowest price but the model is also on sale and in stock at nearby competitor. Eddie walks out and heads to the store just down the road to buy the TV.
Price shopping has been around as long as retailing but the practice of “showrooming”—a customer checking out products in the store and using his smartphone to search for a better deal, in some cases scanning barcodes—is a relatively new and growing trend that’s making brick-and-mortar retailers nervous.
Smartphone Shopping on the Rise
The mobile Web, and smartphone apps in particular, have transformed shopping, making it easier than ever to gather product information and price shop on the go. “We’re seeing an increase in price-comparison shopping and those apps are getting easier to use,” said Linda Barrabee, NPD’s research director for connected intelligence. Recent NPD data shows that three-quarters of consumers use the mobile web and shopping websites, while just over half (55 percent) use shopping apps like ShopSavvy and Amazon’s PriceCheck, which let them scan barcodes, take pictures, and say or type in product names to get information and find lower prices at local retailers or online.
Best Buy's Mikan Addresses Employees
April 20, 2012
Best Buy has released a video with its interim CEO, G. Mike Mikan, laying out his vision for the company following the departure of former CEO Brian Dunn.