Brick And Mortar Retailers - It's Time To Fight Back

Oct. 26, 2015 8:30 AM ETAMZN, BBBY, BWLD, CZR, JWN, M, MGM, PRET, RAD, SPLS, T, TJX, UAA, URBN, WEFIF, WFGPY, XRT, RTH3 Comments
The Financial Lexicon profile picture
The Financial Lexicon
3.39K Followers

Summary

  • Brick and mortar retailers are not doomed to become Amazon’s showroom.
  • In addition to price matching, retailers must figure out how to get consumers in the stores and how to keep them there.
  • An innovative startup named ChargeItSpot is already making its presence known in the retail industry by helping retailers solve those problems.

I have a message for brick and mortar retailers: It's time to fight back.

Just because the internet has changed the retail landscape, shifting purchases that were once made at a physical store into the online space, doesn't mean that every brick and mortar needs to turn into Amazon's (AMZN) showroom. Physical retailers already have the advantage of providing instant gratification, putting a product in the consumer's hands the moment that product is purchased. The trick is to (1) figure out how to get consumers into your store, (2) keep them there, and (3) seal the deal with prices that compete with Amazon.com and other online retailers.

Number three isn't that hard to figure out. Simply price match, and the customer will buy the product at your store. A few weeks ago, I walked into a Sports Authority to buy a particular tennis racquet. The racquet was on sale for $99.99, but I used my phone to do a quick check of prices online and found the same racquet on sale for $79.99 elsewhere. I showed the price to the guy at the register, he matched it, and I went from Sports Authority straight to the tennis court. Price matching is becoming more common and will help brick and mortar stores compete against online retailers.

The biggest problem is how to get people into your stores and keep them their long enough that their browsing turns into a purchase. Although many shareholders and analysts have yet to realize it, one solution to that problem is already beginning to spread through the retail industry: ChargeItSpot.

ChargeItSpot is an innovative startup (private/non-public company) making big waves in the retail space. It provides lock-away mobile phone charging stations in retail stores around the country. The charging stations are free for the shopper and

This article was written by

The Financial Lexicon profile picture
3.39K Followers
Nothing I write should be considered investment advice.  Only you can decide if any specific financial asset, security, allocation, opinion, idea, etc. is best for your financial portfolio.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am long the bonds of AMZN and T as well as the non-public, preferred stock of ChargeItSpot.

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