MONTREAL -- Canadian independent businesses are sounding the alarm on a consumer practice called "showrooming," which they say is seriously hurting their sales.
Showrooming, as defined by the Canadian Federation of Independent Business (CFIB) is "when shoppers browse local businesses to try out or learn about a product, but then buy it from a big box store or online competitor."
A survey conducted on behalf of the CFIB found that six in 10 Canadian merchants have experienced showrooming, with a third of those saying the practice has had a "significant" impact on their business.
A separate poll found that 55 per cent of Canadian consumers report having engaged in the practice. Younger shoppers (aged 18 to 34) were the most likely to showroom; three out of four people in that age group say they've done it, with one in seven saying they have done it often.
“When customers go into independent stores to ask questions or try on merchandise and then take a picture or write down a model number so they can buy the item online, they’re not just taking away a sale – they’re taking money away from their neighbourhoods," said CFIB president Dan Kelly. "These are the shops that support local kids’ hockey teams or donate to the community food bank every Christmas.
"They care about their customers and want to help and share their expertise, but their rent, their property taxes and their employees need to be paid. Ultimately, when consumers take up the time of local retailers but spend their money elsewhere, it’s our communities that suffer.”
The CFIB says it has received reports from its members of particularly brazen showrooming, including customers who have come into stores to check out a product and discuss it with a merchant, only to buy the product online while right there in the store.
“You wouldn’t sit down in a restaurant just to read the menu and get some cooking tips from the chef before heading to the grocery store,” said Ryan Mallough, director at CFIB and the lead author of the report. “Showrooming may seem harmless, but can really hurt independent retailers, and undermine the health of local communities – especially during the make-or-break holiday season when they’re competing against big box stores and online giants.”
Despite the rise of showrooming and its negative impacts, Kelly says local merchants are appreciative of all their customers, and just wanted to get the word out about the challenges they face ahead of the busy holiday shopping season.
"With Black Friday and Cyber Monday kicking off the holiday shopping season, we encourage consumers to save themselves the crowds and clicks and visit their local, independent merchants," Kelly said. "They’ll thank you and pay it forward.”