Study: Digital divide separating retailers from shoppers hurts sales


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KANSAS CITY, Mo. (AP) — A new study finds stores that frown on customers using smartphones to shop are making a big mistake.

Deloitte Digital says it found "showrooming," as it's called, actually boosts in-store purchases, contrary to fears that shoppers will make online purchases instead. The rate of in-store purchases surged by 40 percent when shoppers used mobile devices.

Kasey Lobaugh (LOH'-baw), Deloitte's chief retail innovation officer, says the influence of digital interactions on in-store sales "makes the growth of e-commerce pale in comparison."

Deloitte's data show digital interaction using a mobile device influenced $593 billion of in-store retail sales, compared with only $40 billion in "mobile commerce" -- purchases made with the device.

The study found in-store shoppers aren't just price-checking with mobile devices. They're looking for technical details, recommendations and information to make them more confident in their purchases.

But Lobaugh says very few retailers are eager to provide the functionality or the information that in-store shoppers want, and it's costing them business. Deloitte projects digital interactions will influence half of all store sales by the end of this year.

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%@AP Links

236-w-38-(David Melendy, AP correspondent, with Kasey Lobaugh, chief retail innovation officer, Deloitte Digital)--A digital divide is separating retailers from shoppers, and hurting sales. AP correspondent David Melendy reports. (27 Apr 2014)

<<CUT *236 (04/27/14)££ 00:38

238-a-10-(Kasey Lobaugh (LOH'-baw), chief retail innovation officer, Deloitte Digital, in AP interview)-"the in-store shopper"-Retail analyst Kasey Lobaugh at Deloitte Digital says there's a "digital divide" between what retailers offer and what customers want in their shopping experience. (27 Apr 2014)

<<CUT *238 (04/27/14)££ 00:10 "the in-store shopper"

239-a-12-(Kasey Lobaugh (LOH'-baw), chief retail innovation officer, Deloitte Digital, in AP interview)-"likely to buy (second reference)"-Retail analyst Kasey Lobaugh at Deloitte Digital says few retailers facilitate or encourage in-store smartphone shopping, and actually lose sales because of it. (27 Apr 2014)

<<CUT *239 (04/27/14)££ 00:12 "likely to buy (second reference)"

237-a-14-(Kasey Lobaugh (LOH'-baw), chief retail innovation officer, Deloitte Digital, in AP interview)-"only 40 billion"-Retail analyst Kasey Lobaugh at Deloitte Digital says that contrary to popular opinion, the use of smartphone apps by shoppers in retail stores -- called "showrooming" -- results in a lot more brick-and-mortar sales than online purchases, influencing 19 percent of all in-store sales. (27 Apr 2014)

<<CUT *237 (04/27/14)££ 00:14 "only 40 billion"

240-a-10-(Kasey Lobaugh (LOH'-baw), chief retail innovation officer, Deloitte Digital, in AP interview)-"by 40 percent"-Retail analyst Kasey Lobaugh at Deloitte Digital says "showrooming," or in-store use of smartphone shopping apps, does not deter brick-and-mortar sales as many retailers fear. (27 Apr 2014)

<<CUT *240 (04/27/14)££ 00:10 "by 40 percent"

241-a-15-(Kasey Lobaugh (LOH'-baw), chief retail innovation officer, Deloitte Digital, in AP interview)-"in their purchase"-Retail analyst Kasey Lobaugh at Deloitte Digital says "showrooming" with smartphone apps doesn't involve just looking for better deals online or in other stores. (27 Apr 2014)

<<CUT *241 (04/27/14)££ 00:15 "in their purchase"

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