Having store leases is bad because leases are liabilities just like debt.
A lease is a lease. I can assure you that commercial/industrial space is leased in the same manner, and sometimes from the same real estate companies, as retail space. A book is a book. It takes up the same amount of space in a retail store as in a commercial/industrial space.
Now obviously industrial space is going to be cheaper than prime retail space. But nevertheless, that five-football field warehouse in Delaware isn't free, and nor are those (two?) warehouses in Seattle.
Real estate is real estate, and a book in inventory takes up real estate.
Why is it that only the positive benefits of e-tailing are mentioned by Amzn bulls, and negatives ignored?
Fulfillment. As Glenn as long and strenuously pointed out, this is a very big negative of mail-based retailing, whether the order comes in via telephone or the internet.
Here's another thing: Amazon must use credit cards. That slices another 5% off the top line. Whereas of course B&N also accepts credit cards, a substantial amount of people (don't know the %) still use greenbacks to pay for their purchases.
Another negative, IMO: shopping and ordering a book or anything via the telephone or the internet is boring. Regardless of how "boring" people say malls and stores are in the real world, they sure were packed this Christmas, at least as much if not more than in past years. People enjoy shopping and buying in real stores, and they will always enjoy that, IMO. |
