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Essay text:
Opening stores in prime location also increases land and rent lost. The undercapacity of distribution centres also contribute to its heavy cost.
Efficient distribution and logistics management- Lack of IT system makes it costly and inefficient to transfer information, leading to ineffective inventory logistics. Distant distribution centres and poor infrastructure make distribution management of goods costly and complex.
Small town location - Population in small town do not have sufficient buying power. Poor transportation infrastructure which does not support supply of much demanded fresh food further makes it difficult to implement the model in US...
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