Retail: The Final Frontier?

Consider a major athletic footwear retailer that has spent $130 million on national advertising every year for a number of years. TV and print ads are designed to drive consumers to stores that carry its line of shoes. Its advertising makes the brand look fairly new, but the majority of Americans are familiar with this company and are already customers. Still, the fixed asset distribution model prevents this company, or any other retailer, from developing an interactive, intimate relationship with those customers.