In Praise of Chain Stores

Saturday, January 13th, 2007

Virginia Postrel speaks In Praise of Chain Stores:

Chains do more than bargain down prices from suppliers or divide fixed costs across a lot of units. They rapidly spread economic discovery — the scarce and costly knowledge of what retail concepts and operational innovations actually work. That knowledge can be gained only through the expensive and time-consuming process of trial and error. Expecting each town to independently invent every new business is a prescription for real monotony, at least for the locals. Chains make a large range of choices available in more places. They increase local variety, even as they reduce the differences from place to place. People who mostly stay put get to have experiences once available only to frequent travelers, and this loss of exclusivity is one reason why frequent travelers are the ones who complain.

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