August 3, 2012
Research analyst Austin Smith discusses why he thinks showrooming, going into a store to learn about an item before purchasing it online, is a major threat to retailers. While a study by Forrester Research states that showrooming boosts sales rather than eats into them, Austin disagrees with this conclusion for all consumer goods besides clothing. The data show that people are moving online to purchase their electronics at lower prices. Retail investors should be wary of this trend.
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