I'm guessing having your own delivery trucks would be cheaper, but only if you're doing enough volume (like, multiple packages per neighborhood per week). Walmart could probably get there, but not sure about smaller stores (even Best Buy).

They also have to be shipped to the store. End-to-end shipping costs won't be that different between the warehouse model or the retail model.

Hmm so why set up shop in a retail outlet then? Why not just ship directly from the warehouse?

If i'm understanding, the article is talking about using the retail outlet as a warehouse, where you have the items shipped from a warehouse to your retail outlet, and then shipped again to buyers.