Quote:
Originally Posted by Barty
but the bottom line is BB just cannot continue to provide free show rooms for tax free, lower overhead e-tailers like Amazon. What's going to happen here?
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I don't think that BB is actually providing free showrooms for Amazon, etc. (Although I think bookstores might be). I'm not sure how much overlap there is between what BB offers and what Amazon offers - BB seem to always have slightly different models than what Amazon offers. And, in any event, it's not like I really need to take a computer out for a test drive.
I think the problem that BB has is that it has basically the same retail model as Amazon. But Amazon does it better.
The original big box store concept was that a retailer would open a giant store with a huge selection of products, low prices, and minimal customer service. This model drove out smaller, more expensive specialty retailers, with smaller selections, higher prices...but often knowledgeable sales staff.
But then Amazon came along with an even larger selection of products, lower prices, and cheap home delivery, which took away a lot of BB customers. (Although Amazon wasn't the only one - you can buy computers and flatscreen TVs at Target and Walmart now, which will also undercut BB).
And BB is also under pressure from even larger, cheaper big box stores like like Fry's.