Showrooming’s hidden costs

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This article was published 28/11/2019 (1861 days ago), so information in it may no longer be current.

Are you planning on buying something this Cyber Monday that you’ve examined in a local store earlier? If so, you’ve only got yourself to blame when your favourite shop goes out of business.

Some people call it comparison shopping — browsing in shops, asking employees questions, then buying those products online or in big box stores. Retailers are labelling the practice “showroom shopping or showrooming,” and small business owners say it’s killing them.

‘We were kind of blown away with how big the problem actually is’
– Jonathan Alward, prairies director, Canadian Federation of Independent Business 

Earlier this month, the Canadian Federation of Independent Business (CFIB) surveyed more than 1,600 small business owners and found that 60 per cent thought they’d experienced showroom shopping.

Showroomers don’t discriminate — retailers selling anything from heavy machinery to fine jewelry felt the impact. A business’ location didn’t affect whether it would be showroomed.

Almost 90 per cent of business owners who thought they’d experienced showrooming said the practice affected their sales. Thirty-two per cent said it’s had a significant impact on their sales, while 57 per cent said it’s had a minor impact.

Jonathan Alward, prairies director, Canadian Federation of Independent Business said there are consequences to showroom shopping that people often don’t think about.

“A lot of that money that (shoppers) spend on Amazon is not only leaving Winnipeg and Manitoba but leaving the country altogether,” Alward said. “You’re taking business away from small brick-and-mortar shops that are paying property taxes. They’re paying taxes to fund our health, our education, our roads.”

Small businesses employ locals, Alward said. Some small business owners are open to negotiating the costs of their goods, but customers assume there’s no option to bargain, he said.

“People are afraid to have those conversations with business owners,” Alward said.

The CFIB partnered with Angus Reid Global to survey Canadians about showroom shopping. The results came out this week, just in time for Black Friday and Cyber Monday.

Fifty-five per cent of respondents said they’d showroom shopped: 28 per cent had done it once or twice, 20 per cent did it a few times, and 7 per cent frequently.

“We definitely want to encourage people to think local first and understand the importance of that,” Alward said.

People aged 18 to 34 are most likely to showroom shop.

 

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Anastasia Pasieczka, 21, said she’s showroom shopped for electronics, such as her laptop for university. She visited stores to ask questions about models’ speeds and memories.

“Once I found out which was the best for me, I went online and found the one that I wanted,” Pasieczka said.

Money plays a factor: Pasieczka said she can find things cheaper online, and there’s more variety.

Even so, Pasieczka said she likes buying from local business owners.

“I don’t do it as much and as often as I’d like to,” she said.

She goes to farmers markets in the summer, but she tends to shop online and at box stores in the winter.

“There’s a definite difference,” Pasieczka said. “When it’s a local (business), they have a story you can identify with. You’re contributing to helping them.”

In their recent survey, the CFIB asked Canadians if they agreed that they’d rather shop online than spend at local small businesses. Forty per cent of respondents strongly disagreed, while only five per cent strongly agreed.

Winnipeggers can find local businesses on shopsmallbiz.ca. Small business owners looking to grow their online presence can set up a free account on the website.

gpiche@freepress.mb.ca