“Showrooming” adds to woes of hard pressed retail sector

  

The rate of retail outlets closing in the UK shows no sign of easing following a grim 2012, when a net 1,779 closed. That represents a 10-fold increase from the 174 in 2011 and reflected casualties including Game Group, JJB Sports, Blacks Leisure and Clinton Cards. Although many of the companies were salvaged in one form or another, hundreds of stores closed. 

With the rise of online shopping the chains did not need as many stores as they did in the past, a trend that looks set to accelerate this year. 

People have got less money in their pockets, employment is tighter and also we've seen a massive growth in the supermarkets in terms of non-food retail.

Now further adding to the problems of the “bricks and mortar retailers” is the rise of “showrooming”. Essentially customers going into a shop to browse but in reality an exercise to check out goods and then search on line for a more competitive deal.

The growth of online shopping is a juggernaut now accounting for 12% of retail sales - and forecast to be at least 30% by 2020. 

Those retailers who fail to exploit all areas of multi channel marketing whilst finding themselves saddled with the burgeoning costs of maintaining retail outlets will continue to suffer and produce more casualties in the sector in the coming months.