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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Austin Smith has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com and Best Buy. Motley Fool newsletter services recommend Amazon.com and hhgregg. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.