The 1 Statistic Best Buy Should Be Terrified Of
In today's edition, Consumer Goods Editor & Analyst Austin Smith looks at the one number Best Buy (NYS: BBY) should be terrified of. In a recent Comscore study 63% of people who purchased consumer electronics online said they only did so after showrooming, or going into a bricks-and-mortar store to select the item first. When asked why, 72% of people said it was because of lower prices. Consumer electronics is the category most commonly under pressure from showrooming, and the trend only appears to be picking up steam.
While this may seem like a topic that's already been covered so much, it's difficult to overstate the threat to Best Buy and other electronics retailers, here. Their business model of high-margin up-sells simply can't survive in a world with price transparency and convenient online purchases.
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The article The 1 Statistic Best Buy Should Be Terrified Of originally appeared on Fool.com.Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com, Best Buy, GameStop, and RadioShack. Motley Fool newsletter services recommend Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.