Anyone with a smartphone can now be a savvy cybershopper for the holiday season.

The real bane for the retailer is the independent price comparison app

With mobile internet and apps, it is easy for someone in a store to compare prices on specific items and then make a quick decision to buy or leave or to instantly make a purchase elsewhere.

This is called ‘showrooming’, a practice which traditional retailers dread, and which is surging with the spread of smartphones and tablets.

A survey by US research firm IDC indicates that some 48 million shoppers, or about 20 per cent of the US adult population, will ‘showroom’ during the upcoming holiday shopping season, up 134 per cent from a year ago.

IDC predicts showrooming will influence up to €1.3 billion in holiday retail purchases.

Big ticket items will be the most showroomed items this year, according to IDC, especially consumer electronics. But the survey showed people also compare prices for apparel and footwear, and use phones to get information and consumer reviews of products as they shop.

Various mobile apps, such as Amazon’s Price Checker and the TGI Black Friday app, make it even easier for these consumers – and more challenging for retailers.

“The real bane for the retailer is the independent price comparison apps,” said Greg Girard, analyst at IDC.

Girard said some price-sensitive shoppers are asking retailers to match prices on their smartphone apps.

“The majority of the people were reluctant at first to ask for a better price but they were more likely the next time if they succeeded the first time,” he said.

Others said the impact of showrooming is still unclear.

Yankee Group research director Sheryl Kingstone said the consultancy found that for big-ticket electronic purchases such as TVs, 73 per cent purchased in-store instead of online.

“However, in-store smartphone usage is still a disruptive force and should not be ignored,” she said. “Forty-one per cent of smartphone owners have used their devices to compare prices.”

Roughly half of US adults now own a smartphone and about a third have tablet computers, according to market watchers.

A study by research firm Edgell Knowledge Network with eBay Local found 80 per cent of US retailers will be impacted by showrooming, losing five per cent of sales on average.

“Once consumers start using their smartphones for shopping they tend to use them a lot – typically for 50 to 60 per cent of their store shopping trips, depending on the store category,” said a report from the Deloitte consultancy.

But physical-store retailers are fighting back. Wal-Mart, for example, has its own mobile app which allows customers to connect in stores to their network and buy items not in stock at the store. The company says 12 per cent of mobile sales come from customers who are in the stores.

“We’re confident about products and pricing, and we actually think showrooming is a good thing,” said Wal-Mart spokesman Ravi Jariwala.

“Our store managers are empowered to do what they need to do to satisfy customers on price. And we’ve invested a lot in our mobile technology to empower customers in store, including letting them see an expanded selection from Walmart.com.”

Other retailers, including Target and electronics giant Best Buy, also invite showroomers to ask for price matches.

IDC’s Greg Girard said that savvy retailers may be able to outsmart some smartphone shoppers if they use technology well.

“The smartphone coming into the store is actually good news for retailers,” Girard said. “It means consumers are delaying their decisions until they’re in the store.”

If a consumer uses a store’s smartphone app and then logs into the in-store Wi-Fi, the retailer will have data on the customer’s shopping habits and may be able to determine the right promotion for that person, said Girard.

Beware of fraudulent online adverts

Attention smartphone shoppers: watch out for cybercriminals using phony apps or messages in an effort to hijack your device or steal your data.

Law enforcement and security experts say that as more people use their mobile devices in stores and on open Wi-Fi networks, the risks are increasing as well.

The FBI-backed Internet Crime Complaint Centre is warning consumers to be on the lookout for fraudulent apps, messages and Wi-Fi networks which can trick users of mobile devices to divulge passwords, personal data or credit card numbers.

“Many times, e-mails, texts or phone calls will look or sound like they are coming from a well-known retailer, stating a need to ‘verify’ the full credit card number you used for a purchase or ask you to click a link to update personal account information,” the centre said.

The centre said Android devices are often targeted by spyware, including one system called FinFisher, capable of taking a mobile device, or Loozfon, “an information-stealing piece of malware”.

Security firm McAfee’s Gary Davis said that as the popularity of apps surges, “so have the chances that you could download a malicious application designed to steal your information or even send out premium-rate text messages without your knowledge.”

Davis said some fraudsters are using Twitter ads offering special discounts for popular gifts, linking to malicious software.

“Criminals are getting savvier with authentic-looking social ads and deals that take consumers to legitimate looking websites,” Davis said.

“In order to take advantage of the deals or contests, they ask them for personal information that can obtain a shopper’s credit card number, e-mail address, phone number or home address.”

Lookout, a security firm offering free apps for Android and iPhone, also urges prudence.

“Be careful what you do on public Wi-Fi networks especially when you’re shopping. Do not expose passwords, account numbers or credit card information unless you are certain that you are on a secure connection,” a company statement said.

“Use discretion when downloading apps. Even the most innocent-looking shopping app can contain software designed to steal personal data, make fraudulent charges or even hijack your phone. Only download apps from sites you trust.”

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