Why Geotexting Won't Save Retail

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The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and senior technology analyst Eric Bleeker discuss topics across the investing world.

In today's edition, Eric and Austin discuss a trend in retail that looks great on paper, but is actually a bunch of hot air: geotexting, or geofencing. This strategy involved sending consumers opportunistic text messages when they are in a certain proximity of stores. The messages are store-specific and would highlight recent sales or discounted items. While this sounds great, Eric and Austin see it as highly ineffective. For one, there is no guarantee you'll be getting consumers when they are in a "shopping mood," and repeat texts when they are simply driving by a location could turn them off entirely. Couple that with an already low uptake for services like this, and this is far from the white knight that bricks-and-mortar retailers may have been hoping for.

Retail is in its largest period of transition ever. The companies left behind will bankrupt investors, while the few exceptional leaders benefiting from this change will see astounding growth in the years ahead. The Motley Fool has created a free report called "The Death of Retail," which highlights two companies hand-picked by Fool analysts that are set to dominate the future. To check out these two companies and learn more about the future of retailing, click here now -- it's free!

At the time this article was published Austin SmithandEric Bleekerhave no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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