Online shopping has brought upon a new phenomenon called showrooming, a term describing the act of browsing brick-and-mortar stores and then later making the purchase it online often at a cheaper price. With the abundance of smartphones, showrooming is taking place around stores more than ever and companies like Target and Best Buy have already implemented year-round price-matching programs.

Perhaps there has been no company that’s cashed in on this more than Amazon. Now, thanks to Seattle location analytics startup Placed, we have some data on exactly how much Amazon is affecting physical stores.

Placed used 14,925 U.S. survey respondents and combined that with nearly one billion U.S. location data points to measure customers of Amazon and their path in the physical world.

“Placed Aisle to Amazon is the largest study to date quantifying the impact of showrooming for brick-andmortar retailers,” David Shim, founder and CEO of Placed, said in a press release. “The study clearly shows that showrooming is more than media hype, and a real problem that retailers need to address. By putting a number to showrooming, retailers can start to better understand the impact, and take action based on data versus anecdotes and assumptions.”

Here are some of the key findings:

General: 

  • 25.2% of Amazon customers shop at Walmart, which is 2x higher than second-place Target (10.7%)
  • Highest-risk retailers for showrooming by Amazon Customers were Bed Bath & Beyond (27% more likely to visit), Petsmart (25%) and Toys”R’Us (21%)
  • Showroomers who spent more than $100 a quarter at Amazon were 63% more likely to visit Victoria’s Secret and BJ’s Wholesale Club than the average U.S. consumer
  • TJ Maxx, Costco, and Office Depot top the list in terms of places Amazon customers who use the Amazon Price Check app are likely to go

Gender-related: 

  • Men showroomers are 39% more likely to go to Best Buy and 24% more likely to go to Home Depot
  • Females showroomers 49% more likely to go to Kohl’s and 47% more likely to go to PetSmart
  • Female Amazon customers are 60% more likely to visit a Target when compared to men
Amazon Prime:
  • Amazon Prime members were 45% more likely to visit a Costco and 39% more likely to visit BJ’s, both warehouse membership clubs. 

We wrote about Placed back in June, with Shim telling us at the time that the service allowed app developers to see where people are consuming content. Measured locations are aggregated across thousands of users to provide analytics to third parties.

Placed expanded its location analytics in August and raised $3.4 million from Madrona Venture Group and others last March.

Previously on GeekWire: New Placed app lets you donate to charity by installing app

Comments

  • http://twitter.com/Michael_Paulson Michael Paulson

    Dave – Great data – thanks for publishing this. A suggestion for the next rev: Now that Best Buy and Target have made their price-match-vs-Amazon policies permanent, it would be interesting to see the extent to which these same people are price-matching vs. just going to Amazon to purchase there.

  • David Blade III

    I’d pay more at Amazon just to avoid Best Buy’s extended warranty and crapware removal sales pitches.

  • Chris

    I think showrooming is blown out of proportion. I wouldn’t be surprised if physical stores get just as much, if not more, business from people that check online for the reviews then go to the store to buy the one they researched. If I actually go to the trouble of driving to the store, I’m more likely to just buy it there assuming it is in stock.

  • JangTrang

    Those guys seem to know whats going on over there.

    NetAnon.da.bz

Job Listings on GeekWork