February 6, 2013 Accessories Are the Silver Lining Sean Wargo By Sean Wargo , Senior Director , Business Intelligence and Bds Marketing Facebook Facebook Twitter Twitter LinkedIn LinkedIn Google + Google+ Email Email 1 Comment Comments Brick-and mortar retailers have good reason to be concerned about the future of their businesses. To continue reading, tell us a little about yourself. Work Email* First Name*Last Name*Title*Company*Zip/Postal Code*Primary Business*Primary BusinessRetailer - Physical Store OnlyRetailer - E-Commerce OnlyRetailer - Omnichannel ( Physical + E-Commerce)DistributorManufacturerServices - Financial/Retail/TechnologyIndustry AssociationManufacturer s RepresentativeCreative Services/Ad AgencyOtherJob Function*Job FunctionManagement - CEO/President/OwnerManagement - VP/General ManagerManagement - Other C-levelBuyer/Merchandiser - VP/Director/ManagerMarketing - CMO/VPMarketing - Director/ManagerSales - CRO/VPSales - Director/ManagerSales - OtherTechnology - CTO/VPTechnology - Director/Mgr.OtherSales Volume*RevenueOver $50 million$25 000 001 - $50 000 000$10 000 001 - $25 000 000$5 000 001 - $10 000 000$1 000 001 - $5 000 000$500 000 - $1 000 000under $500 000 1 2 3 AllNext » 1 Comment View Comments Sean Wargo Author's page Senior Director Author's page Business Intelligence Author's page Bds Marketing Author's page Related Content Steve Koenig, Director of Industry Analysis, CEA From Products to Services What Customers Want UNBOXED: olloclip Lens Kits and Hand Grip for iPhone How Mobile Apps Are Helping Retail Businesses Succ Botspot (Remember Them?) was Named Among Best German Startups Comments Bill Matthies "Brick-and mortar retailers have good reason to be concerned about the future of their businesses." I agree with you Sean but not with what I believe is the implication of the statement that follows immediately thereafter. "Online shopping as an alternative is just too easy, too convenient." Online shopping is convenient but that isn’t the sole or possibly even primary reason for not buying at brick and mortar. Nor is a lower price, which is becoming increasingly difficult for online retailers to do given shipping costs and the growing trend of taxing internet sales. The more appropriate question is why shop at brick and mortar and if the answer is only becasue "we’ll meet or beat any price", that’s not enough. I read an article the other day where the author suggested that Best Buy should counter showrooming by charging $2 to enter the store; a refundable amount if the shopper then made a purchase. If the number of consumers necessary to sustain or grow BB’s business won’t go there for free why would they agree to pay $2 to do so? They don’t because there’s little reason for them to do so and until BB and other brick and mortar retailers address that fundamental problem, nothing will change. And as far as accessories are concerned, yes, that is a profitable business. However if the suggestion is to give up making money on the primary products those accessories are used with, how long-term viable a strategy is that? Selling accessories should be the "icing" on the "cake", not the cake itself. There are viable, prosperous brick and mortar examples although very few in CE. Apple does a good job as does Nordstroms, Trader Joe’s, and a host of independent coffee shops in addition to and in spite of Starbucks. If they can do it, why not CE?