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Survey: retail CFOs not concerned with showrooming

October 3, 2012

An annual poll by financial consulting firm BDO shows that the majority of retail CFOs are not concerned with the showrooming phenomenon. 

According to an article on NBCnews.com, 88 percent of CFOs feel that showrooming is under control or not an issue, and instead are more concerned about how consumer confidence may be affected by next month's presidential election.

Although showrooming has had a major impact on consumer electronics, with chains such as Best Buy, one-quarter of CFOs said that their primary strategy to counter showrooming is improving customer service. Another 25 percent said they are expanding options for in-store pickups and returns, 17 percent are using exclusive goods, and another 17 percent are working on matching prices with online retailers.

Retail CFOs anticipate that online sales will rise 5.9 percent this year, while they predict total sales will rise 4.5 percent and sales in comparable stores will rise 4.1 percent, according to BDO. Separately, the National Retail Federation said on Tuesday that it expects U.S. holiday season sales to rise 4.1 percent, slower than in the prior two years, weighed down by mixed economic data and political uncertainty, the article reported.

"Showrooming is not a fad or something that is just cool to do for the moment and will pass," said Stephen Wyss, partner in the Retail and Consumer Products Practice at BDO USA. "I think it's a real indicator of consumer behavior, and how consumers are going to continue to behave, using technology, to maximize their savings and the efficiency of their shopping. Retailers are focusing on that customer experience and customer service aspect that many consumers will value. The key is how much will consumers value it over a bottom line price."

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