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E-Tailing and Internet-Related Real Estate Cost Savings: A Comparative Analysis of E-tailers and Retailers

Author

Listed:
  • Andrew J. Schlauch

    (PricewaterhouseCoopers LLP, Denver, CO)

  • Steven Laposa

    (PricewaterhouseCoopers LLP, Denver, CO)

Abstract

This article explores differences in the corporate real estate strategies of traditional retailers and those of electronic retailers, or e-tailers. The primary issue addressed is whether e-tailing companies realize benefits of their non-retail, online operations, specifically in the form of lower real estate-related expense ratios when compared to traditional brick-and-mortar retailers. The study reveals three trends. First, the majority of retailers studied continue to focus their corporate real estate strategies in the retail space world. However, some companies are incorporating their online operations into their real estate strategies and are beginning to see lower real estate-related costs as a result. Second, there are differences among e-tailers in their real estate strategies as well as some indication of differences in the real estate-related costs associated with the strategy chosen. Third, e-tailers are not realizing real estate-related cost savings over their retailing competitors.

Suggested Citation

  • Andrew J. Schlauch & Steven Laposa, 2001. "E-Tailing and Internet-Related Real Estate Cost Savings: A Comparative Analysis of E-tailers and Retailers," Journal of Real Estate Research, American Real Estate Society, vol. 21(1/2), pages 43-54.
    • Handle: RePEc:jre:issued:v:21:n:1/2:2001:p:43-54
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    Citations

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    Cited by:

    1. Joanne Loundes, 2002. "Cost Focussed Firms and Internet Usage," Melbourne Institute Working Paper Series wp2002n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Charles Leung & N-K. Chen, 2006. "Intrinsic Cycles of Land Price: A Simple Model," Journal of Real Estate Research, Taylor & Francis Journals, vol. 28(3), pages 293-320, January.
    3. C.M. Lizieri, 2003. "Occupier Requirements in Commercial Real Estate Markets," Urban Studies, Urban Studies Journal Limited, vol. 40(5-6), pages 1151-1169, May.
    4. Joanne Loundes, 2002. "Business Use of the Internet in Australia," Melbourne Institute Working Paper Series wp2002n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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