One reason retailers are reluctant to use distribution centers is that retail store space is typically much less expensive than space at a distribution center, so it is more cost-effective to store merchandise and get it ready for sale at the retail store rather than at a distribution center.

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Retailers often use distribution centers because they allow for more efficient handling and storage of goods, taking advantage of economies of scale, and typically have lower costs per unit of space compared to retail store locations. Distribution centers streamline the supply chain, reduce inventory holding costs at retail stores, and can lead to more efficient distribution processes.

One Reason Retailers Are Reluctant to Use Distribution Centers Is