From B&N to the Future of Physical Stores

I came across this article talking about Barnes & Noble’s plan to make its Nook e-book business as a separate company. A deal with Microsoft and Pearson is valued at more than $1.7billion, way larger than B&N’s stock value, which is $800million. What seemed more interesting than the article itself is the video that is attached to it. The video shows B&N’s main distribution center. The VP talks about how millions of boxes are packed and shipped from the building.

http://money.cnn.com/2013/02/25/investing/barnes-and-noble-buyout/index.html?iid=SF_BN_River

   It seems that all types of business are moving to the web, and this brings to my question: How will the functions of the physical stores change in the future? If the bulk of sales and revenue come from online stores, retail stores will function more as a brand advertisement and product display center. If this is the case, then companies like B&N are likely to continue shut down physical stores and leave those that are at the prime location for brand-messaging purposes. Then, what factors regarding supply chain should companies consider when they close a certain number of physical stores?

Reference:
http://money.cnn.com/2013/02/25/investing/barnes-and-noble-buyout/index.html?iid=SF_BN_River