Roger Saunders

Target Looks to Battle Pricing Apps

January 24, 2012

FROM RETAILWIRE:
Target Corp. is exploring pricing changes to counter the practice of "showrooming," or using mobile pricing apps to check out and scan the price of products in stores only to purchase them at a less expensive price online. Do you think Target's purported tactics to offset the "showrooming" trend will be effective?      [more...]

Target has the purchasing power to seek specialty packaging, sizes, and features that selected vendors will be willing to develop. This will provide those selected vendors with a load-in sales/marketing edge over the short term.

A more effective approach for the right retailer might be to embrace the increasing use of mobile devices, and literally set up examples of making use of them within their store. Then, while the consumer is at their side/on their site, demonstrate the benefits of making their purchase with them. Trusted retailer, convenience, value (perhaps pricing), location (the shopper is there), service.

Retailers cannot run and hide from this phenomenon. Some consumers are going to "kill for a quarter," but retailers have to remain aligned with these ultimate decision-makers.