3 Ways to Beat "Showrooming"

The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith discusses topics around the investing world.

In today's edition, Austin discusses "showrooming," and how you can invest to protect from it. Showrooming is the growing consumer trend of going into bricks-and-mortar locations to identify products to buy and then purchasing them online for less. This trend has caused many investors to run scared, but with consumer spending ticking upward again, getting into retail isn't the minefield of value destruction it was a year ago. If you'd like to get in on growing consumer spending without having to worry about showrooming, Austin recommends looking at automakers, grocers, and mattress companies. These three sectors are relatively immune to online shopping and can let you sleep better at night knowing your stocks aren't falling victim to consumers who are shopping around.

There is one other way to play it as well: membership-driven discount warehouses. While the cat is out of the bag on Costco, there is still a better opportunity out there. You can learn more about our Top Stock for 2012 in this analyst report. Just click here to read about it today.

At the time thisarticle was published Austin Smith owns shares of SUPERVALU. The Motley Fool owns shares of Ford, Costco, SUPERVALU, and Whole Foods Market.Motley Fool newsletter services recommendFord, General Motors, Costco, and Whole Foods Market. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't 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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