• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

3

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

3

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Data

Bytes beat bricks

By
Scott Cendrowski
Scott Cendrowski
Down Arrow Button Icon
By
Scott Cendrowski
Scott Cendrowski
Down Arrow Button Icon
June 23, 2011, 5:00 AM ET

We all knew that the 1990s tech boom would change the world. But then a funny thing happened: For years brick-and-mortar companies happily coexisted with their e-rivals. Borders, for instance, actually increased sales from 2000 to 2005 as it dueled Amazon (AMZN). Now those days seem to be ending. Digital companies are so big, and growing so fast, that they’re obliterating old businesses. Consider these four examples: The U.S. Postal Service says it will be insolvent by the end of 2011 without a bailout. Blockbuster and Borders have filed for bankruptcy. And music stores keep closing. Texts vs. Mail The U.S. Postal Service is on track to lose $6 billion this year, as e-mails and texting reduce mail volumes faster than postage fees can rise.

Netflix vs. Blockbuster Blockbuster hit 4,000 stores in two decades. Then, in 1997, Reed Hastings got charged a $40 late fee on Apollo 13 and founded Netflix (NFLX). The rest is history.
Amazon vs. Borders Amazon almost single-handedly bankrupted the No. 2 bookseller in a decade. Barnes & Noble (BKS) is fighting back with its Nook.
iTunes vs. CDs ITunes made its debut in 2003, with devastating effects on music retailers. Tower Records went bust in 2004. Musicland folded in 2006. FYE has shriveled.

About the Author
By Scott Cendrowski
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Agility Robotics Chief Executive Peggy Johnson speaks on stage at Brainstorm Tech 2026 in Aspen, Colorado.
AIBrainstorm Tech
Tech leaders argue AI’s real future Is task augmentation, not mass layoffs
By Sebastian HerreraJune 11, 2026
30 minutes ago
‘China follows Musk very closely’: While SpaceX blocked Chinese investors from IPO, China’s space firms prep their own as a counterweight
AsiaSpaceX
‘China follows Musk very closely’: While SpaceX blocked Chinese investors from IPO, China’s space firms prep their own as a counterweight
By Mia OsmonbekovJune 11, 2026
37 minutes ago
The head of Claude Code hasn’t ‘written a line of code by hand’ in 8 months
ConferencesBrainstorm Tech
The head of Claude Code hasn’t ‘written a line of code by hand’ in 8 months
By Nick LichtenbergJune 11, 2026
59 minutes ago
Inflation is roaring back globally, 2022 style. The Iran war is only half the problem
EconomyInflation
Inflation is roaring back globally, 2022 style. The Iran war is only half the problem
By Eva RoytburgJune 11, 2026
1 hour ago
Bridgit Mendler, co-founder and CEO of Northwood, at Fortune Brainstorm Tech 2026 in Aspen, Colorado. (Photo: Stuart Isett/Fortune)
NewslettersMPW Daily
How Hollywood trained Bridgit Mendler for life as a space founder
By Emma HinchliffeJune 11, 2026
2 hours ago
Stranded on a Denver tarmac, Booking.com’s CEO envisions the AI that should have rerouted him to Aspen before takeoff
AIBrainstorm Tech
Stranded on a Denver tarmac, Booking.com’s CEO envisions the AI that should have rerouted him to Aspen before takeoff
By Sydney LakeJune 11, 2026
2 hours ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
23 hours ago
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
3 days ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
3 days ago
Current price of oil as of June 10, 2026
Personal Finance
Current price of oil as of June 10, 2026
By Joseph HostetlerJune 10, 2026
1 day ago
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.