The death of bricks-and-mortar retail
January 31, 2013 9:24 AM Subscribe
Marc Andreessen predicts the end of traditional retail.
Retail chains are a fundamentally implausible economic structure if there’s a viable alternative. You combine the fixed cost of real estate with inventory, and it puts every retailer in a highly leveraged position. Few can survive a decline of 20 to 30 percent in revenues. It just doesn’t make any sense for all this stuff to sit on shelves. There is fundamentally a better model.
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