Omni-Channel Strategies in Response to the Showrooming Phenomenon in Department Stores -A Case Study of Macy's-

Abstract

A “Showrooming” phenomenon has emerged due to the rapid growth of the on-line shopping market and is associated with consumer shopping patterns. This phenomenon is resulted in new strategies such as the Omni-Channel strategy that are now being employed by the off-line retail industry to meet the needs of consumers who seek information on-line. In particular, human services provided in department stores (which still occupy an important place in the off-line retail industry) are reaching limitations in the ability to maintain consumers. This study provides basic data for the Omni-Channel strategy of domestic department stores by researching and analyzing Omni-Channel strategy cases in Manhattan. This study dissects and analyzes the “Showrooming” phenomenon and the development of the Omni-Channel strategy through a literature review as well as analyzes the Omni-Channel success case of Macy`s department store. The findings indicate that the use of the Omni-Channel strategy by Macy`s department store has solved the problem of “Showrooming,” by integrating on-line and off-line shopping to provide an efficient and convenient shopping experience for consumers. The Omni-Channel strategy offers a means for off-line stores to connect to the online shopping behavior of consumers. The results suggest the need for an organic combination of on-line and off-line distribution channels to adapt to changes in consumer shopping patterns due to a recession in the domestic market.