Retailers Fight E-tailers Like Amazon by Encouraging In-Store Pickup, Other Perks
Posted 07/05/2012 at 6:45am
| by J.R. Bookwalter
If you've been using stores like Best Buy as your own personal showroom for turning right around and buying from Amazon, those same retailers may be stepping up efforts to get you to spend money with them instead.
The New York Times published an interesting report Wednesday on how brick-and-mortar retailers are using perks such as in-store pickup as an incentive to lure customers away from e-tailers such as Amazon.
Mobile devices have made it all too easy for customers to wander into their local store and use an app to scan the UPC code and find out if an item is available cheaper online. While retailers like Best Buy have attempted to thwart such practices by applying their own barcode on "big ticket items," others try to justify the higher price at retail by offering perks e-tailers simply can't match.
“We are living in the age of the customer, and you can either fight these trends that are happening -- showrooming is one -- or you can embrace them,” said Joel Anderson, CEO of Walmart USA. “We have a lot of assets, but they’re only assets if you embrace the trends of the customers.”
In addition to in-store pickup, retailers such as Walmart, Macy's, Sears and The Container Store are also adding web return centers, free shipping outlets, payment booths "and even drive-through customer service centers for online sales to their brick-and-mortar buildings."
Back in April, Walmart began appealing to customers without credit or debit cards by allowing them to purchase online, but pay with cash when the item is picked up at their local store. Anderson claims more than half of his company's Walmart.com sales are now picked up at a retail location.
“Unfortunately, stores have been portrayed as the ugly stepsister here,” remarks Fiona Dias of ShopRunner, a service that works with retailers on shipping. “They do have disadvantages, but the advantages of having a physical footprint are many.”
But don't expect e-tailers like Amazon to let up on their fight for lower prices.
“You will definitely start to see online-only players open stores,” predicts Alison Jatlow Levy, a retail consultant with Kurt Salmon.
Going to an Amazon.com showroom just to see, touch and feel a product before buying online doesn't sound like progress to us…
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