“Showrooming” is forcing brick-and-mortar retailers to use digital price tags to compete with online competitors such as Amazon. What’s showrooming? It’s when customers use their smartphones to compare the in-store price to what’s being offered online, making it challenging to compete on price. To adjust, Bloomberg reports that retailers, such as Nebraska Furniture Mart and Kohl’s, are adopting digital price labels that can be updated instantly, a strategy that also cuts the cost of deploying employees to change physical price tags daily. As this illustrates, digital technology presents retailers with not only competitive challenges, but also opportunities to increase efficiency and cut costs. Retailers stand much to gain from embracing digital business models.
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