Andreessen predicts the death of traditional retail.
Yes: Absolute death
Pando Daily excerpt
“Retail chains are a fundamentally
implausible economic structure
if there’s a viable alternative,” he says.
“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.”
“Retail chains are a fundamentally
implausible economic structure
if there’s a viable alternative,” he says.
“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.”