Best Buy CEO Says Chain Open for Showrooming

Best Buy shouldn't fear showrooming; it should embrace it. So says the consumer electronics chain's new CEO, Hubert Joly.

According to an Associated Press report, Mr. Joly said consumers entering Best Buy stores to compare products and pricing represent an opportunity for the chain to grow its sales.

"Once customers are in our stores, they're ours to lose," Mr. Joly said.

The Best Buy CEO's views are supported by research from Deloitte Consulting earlier in the year which found that smartphone shoppers are 14 percent more likely to make a purchase in a store than consumers not using a mobile device.

New research from IDC Retail Insights found that seven to 13 percent of consumer electronics shoppers will use their smartphones at least once in stores during the holiday season. Showrooming will play a role in 1.4 percent of consumer electronic sales during the period.

"The merchandising and customer services strategies that differentiate a retailer and define its value bear on showrooming shoppers' propensity to rely on their smartphones in stores," said Greg Girard, program director, IDC Retail Insights, in a statement. "Private labels or exclusive brands, customer service, and loyalty stand out as the most promising strategies for dealing with showrooming."

Overall, about 20 percent of adults, 48 million people, are expected to engage in showrooming this holiday season. This number, according to IDC, represents a 134 percent increase over 2011.

• Best Buy CEO: Let's embrace "showrooming" - The Associated Press/CBS News
• Study: Smartphones Shoppers Not So Bad for Brick & Mortar - RetailWire
• IDC Retail Insights Survey Estimates Showrooming Will Influence Up to $1.7 Billion in 2012 Holiday Retail Sales - IDC Retail Insights/Business Wire