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Retail analyst Lori Wachs on the impact on retailers of consumers trying products at a store but buying them online at cheaper prices.
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Needed in -- variety -- prices to survive this show -- phenomenon retail analyst -- westerner right now.
What do they do to stop that -- -- It's really hard to stop this the trend is here to stay so they have to figure out how they can fight back and really get that.
Loyalty from the customer so when they come in and they look at it they actually bring it to the cash register at the store.
Instead of waving their -- defining the cheapest price and then buying its mobile right then and there.
-- Is it legal for them to sort of all the confiscate your phone.
I haven't heard of any retailers going to and they don't know state governments -- -- -- -- but you know the voice of the brick and mortar guys have going for more is that they could say well we have been here you can -- -- -- it right.
And that's certainly is important we've seen retailers get better with that pick up -- store.
And as they do that we see I think it's somewhere -- to 1580% of customers.
Actually when they buy it online for those retailers go to the store to pick -- because there is that I want it right now.
What does this mean to the big brick and mortar guys when I went -- when Amazon.com came on the scene.
There's a big hit a brick and mortar guys are dead -- well you know obviously there were there's a process for some of them did did go way.
A lot of big -- still stay around.
It is this another potential nail on the coffin -- dragging their -- out how would you describe.
It depends -- differentiated the product that the retailer carries as clearly as a related to book stores.
They couldn't really differentiate.
-- -- up for bucks -- if you look at consumer electronics that has kind of -- in the next big victim and Best Buy continues.
To close stores and reduce the footprint of their store -- -- People are going there to buy CDs and dvds like they used you know.
They are getting some help some of -- big vendors it's important for them to have somebody other than Amazon to sell their TV set so starting in the beginning of this month they have put in place I unilateral pricing policy where.
Any retailer that undercuts that price they will no longer -- Sony and Samsung to them.
Taxes are also another issue.
For many years they -- able to hide behind that they said we can't possibly collect from all these differing.
States and so Amazon and is built in 78%.
Advantage.
California recently reach a deal with them.
That goes into effect in September of that will level that playing field and we expect other states to follow.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I don't wanna don't know what -- -- don't wanna going to absolutely and so.
-- their retailers have -- in an amazing position to build up their online presence and she continued to create that customer.
Loyalty and differentiated product by giving them customer reward points which then will drive them.
Either to their website that they can redeem it or to the store where they can cross merchandise.
And said that's we are you have to differentiate.
On customer service and we've seen retailers did -- throughout time.
Not a whole lot are all that exceptional lot of -- if you look at a company like Nordstrom's.
There's a shining example of a company that has really over deliver to that customer and has engendered a lot of customer loyalty.
That's a very good example and very true but I mean this is a little.
Bookstore by us that and they they take some time in the trouble you know wrap things at all and at an edge -- will think well what lord thank.
