The department stores believed they had the only retail format capable of effectively selling premium beauty and fragrance products.

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Wal-Mart, the pioneer of the big-box retail format, is seeing a steady rise in its number of U.S. stores.

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If it is unable to either shift from the big-box retail format to smaller stores, or optimize store space by sub-leasing to other businesses, operating costs will not come down.

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Clearly online retailing requires a lot less retail property space compared to traditional brick-and-mortar format employed by big retail chains like Wal-Mart, Best Buy, Target and Costco.

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But what we do know is that this equates to a very much larger number in terms of retail sales of physical format music.

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Whether the product attracts their attention on the retail shelf because they recognize a favorite, trustworthy brand or a unique package format that may make their life easier, they are looking at the package.

FORBES: Written by Jack Knott

The company faces stiff competition, which primarily comes from large format specialty retailers such as Circuit City and Best Buy, and discount retail giants such as Wal-Mart and Target.

FORBES: Magazine Article

And yes, since its 1983 founding, Costco has been a pioneer in the warehouse format that continues to grow by drawing market share away from mainstream grocery and retail channels.

FORBES: Bargain Prices For Costco's Goods But Not Its Shares