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To: H James Morris who wrote (11884)7/27/1998 9:34:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
If the Dell & Amzn concept is the only future, Does this mean the end to retail as we
know it? If that's true, gosh I'd hate to own retail real estate.


H,

Heavens no. The point I was making was that DELL's model is entirely different. They stock mutiple amounts of each component and assemble a computer from then as requested. They re-order a component of which they are low in quantiy and of course, inventory it. The point is; DELL may need only 50 different components and from those, they can make close to an infinite amount of different computer configurations. This model would work for any prodcut that is assembled with 50 components or less. Products such as books, music, clothing, kitchen appliances, etc. are the compnent in itself. If one was to stock 2 million book titles, one needs 2 million books. That only gives the company one of each book. No advantage here at all.

I am in retail and retail from brick and mortar stores. There is a touch too much retail leaseable area at present, but that has nothing to do with the net. Simply, the developer got greedy and over built.

I see no change in demand for prime retail space. I anticipate retailing will continue in the same fashion as it has for thousands of years.

Glenn