Posted on Wednesday, June 27, 2012
As reported in the WSJ, Best Buy’s interim CEO, G. Mike Mikan, sees ending the trend towards “showrooming” as the company’s number one priority. To do this, he plans to invest heavily in retraining Best Buy’s workforce. It is a worthy aspiration—the big box electronics retailer is sputtering as customers increasing use it as a place to browse merchandise before buying it at Amazon or some other online rival.
But, as I wrote in a column at Forbes, Best Buy’s fight against showrooming is doomed to fail, for three reasons: it consistently provides poorer service than its online competitors, it has structurally higher prices, and dominant customer and technological trends will increasingly conspire against it.
Here’s the link to that Forbes column.