26. In retail, or storefront, business, location is still a key ingredient of business
success. The extent to which this will continue to be true, given the inexorable growth
of Internet commerce, will vary among industries.
In more traditional retail sectors, such as clothing, cosmetics, and home
improvement, an in-person visit to a retail store is often necessary―to try on clothes for
fit, compare fragrances, or browse among a full selection of textures, colors, and styles.
Also, activities such as shopping and dining out are for many consumers enjoyable
experiences in themselves, as well as excuses to get out of the house and mingle with
others in their community. Finally, shipping costs for large items such as appliances and
home-improvement items render home shopping impracticable. Thus, burgeoning
technologies pose no serious threat to Main Street, and location will continue to play a
pivotal role in the fate of many retail businesses.
Nevertheless, technology-related industries are sure to move away from physical
storefronts to virtual ones. Products that can be reduced to digital bits and bites, such
as books and magazines, recordings, and software applications, are more efficiently
distributed electronically. Computer hardware will not disappear from Main Street quite
so quickly, though, since its physical look and feel enters into the buying decision.
Computer superstores should continue to thrive alongside companies such as Dell,
which does not distribute through retail stores.
In conclusion, consumer demand for convenient location will continue with
respect to certain tangible products, while for other products alternative distribution
systems will gradually replace the storefront, rendering location an obsolete issue.-
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