That's insane, though. In reality, these things can coexist just fine, but even if they couldn't... why wouldn't you want to have a business model with lower overhead?
It's the same story as when Sears rose to prominence: they saw a business model the other mail-order retailers didn't understand.
The irony is Sears started as a mail-order catalog but couldn't get back to the old model in time. But of course their large management structures couldn't move as fast as small company with somebody like Bezos at the helm who could just make calls on the spot.