eMarketer: Retailers Are Prepared For Showrooming This Holiday Season

By Pete Rizzo (@pete_rizzo_)

Released on September 10, a new report from eMarketer has declared that showrooming will be less of a threat to global consumers this holiday season.

The result is welcome news for merchants, as fears of consumer showrooming reached epidemic proportions in the run-up to the holidays in 2012. A survey of retailers profiled in Forbes last November indicated that 80 percent of retailers anticipated a 5 percent decline in sales due to the practice last holiday season.

“Holiday Shopping Preview: Omnichannel’s Blurred Lines” leveraged a number of recent reports to suggest that retailers have successfully taken steps to mitigate this threat. By implementing omnichannel strategies – including price-matching, improved inventory management and revamped distribution models, eMarketer concluded that retailers are prepared to retain customers during the upcoming holiday season.

“With online and mobile now omnipresent in consumers’ shopping behavior, the key to creating a seamless customer experience and driving sales is reaching shoppers on any device or at any location, increasing inventory and pricing transparency and providing more fulfillment options than ever before,” eMarketer wrote on September 10.

But, what trends suggest that retailers have successfully responded to the threat of showrooming? We break down eMarketer’s latest findings in this PYMNTS.com Data Point.

Retailer Sentiment 

eMarketer used poll data to make the case that retailers now view omnichannel as the key to their success this holiday season. Citing a June survey from Retail Systems Research, the study noted that 84 percent of retailers believe a consistent customer experience across all channels is the most important aspect of their omnichannel strategy.

Rounding out the top three responses were inventory visibility across all channels and order fulfillment. Eighty percent and 75 percent of respondents said that their success on these fronts was “very important” to their omnichannel strategy.

eMarketer suggested that poll statistics indicate merchants have recognized the threat of showrooming, and are taking steps to mitigate losses.

Planned Holiday Spending

The media outlet further mentioned a July 2013 study from Prosper Insights & Analytics that revealed that consumer holiday spending is expected to remain unchanged from 2012 to 2013. In 2013, 48 percent of consumers say they will spend the same amount as last year, up from 46.3 the year previously. The number of respondents who indicated they would spend either more or less declined 1.3 percent and 0.6 percent, respectively.

Baby Boomers and Generation X shoppers were the demographic groups that are expected to hold the largest shares of consumer spending, accounting for 32 percent and 34 percent of the market. This is likely to correlate with increasing mobile spending, as recent research has indicated that 49 percent of Generation X shoppers and 38 percent of Baby Boomers now own tablets. 

Through their increased willingness to provide a consistent cross-channel experience, eMarketer makes the case that merchants will be better able to convince these shoppers to convert on purchases this year. 

MCommerce Sales By Device 

eMarketer also evaluated the share of holiday spending by device from 2011 and 2012. Comparing reports from Adobe, Kenshoo and IBM, the media outlet illustrated just how far mobile payments have come in the last two years. 

For example, Kenshoo found that from November 1, 2011 to January 2, 2012, smartphones accounted for just 1.35 percent of all retail eCommerce sales, while tablets contributed to 6.9 percent of sales. A similar study, conducted by Adobe over the same period in 2012, observed these numbers rising to 6.5 percent and 13.5 percent respectively.

These statistics illustrate how easy it was for merchants to be blindsided by the rise of mobile payments and the new shopper habits it has enabled. With more retailers aware of the necessity of cross-channel strategies, eMarketer suggests this holiday season may tell a different story.

For a closer look at the numbers, view the full report here.