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Marketing Insights

"Showrooming" Is Killing Retailers: What Target Is Doing About It

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Target is tired of losing sales to shoppers who come in to their stores and see the products they like, only to purchase them at a lower price online. In a letter to their vendors, Target has suggested that suppliers create special products that would set it apart from competitors and shield it from the price comparisons found in various software programs. According to The Wall St. Journal, in a tersely worded letter, Target says, "What we aren't willing to do is let online-only retailers use our brick-and-mortar stores as a showroom for their products and undercut our prices without making investments as we do, to proudly display your brands." Watch for more major retailers to boldly take a stand and fight "showrooming" as it continues to undercut their sales and profits.

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Topics: Branding, Packaging Design, Business Management

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