Videotex: Pandora's box for retailers

Abstract

It is easy to see the benefits which an affordable videotex system would provide for consumers. It is much more difficult, however, to see even a single benefit which might accrue to the retailers who are spending so much money and effort to develop these systems. Already buffeted by over-capacity, declining profit margins and excessive emphasis upon discount promotions, the videotex systems promise to only exacerbate these problems. Still worse, the technology of electronic retailing may create the antecedent conditions necessary for pure competition, which would have an even more devastating effect upon profit margins.