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Dead Store

Definition

Also called a ghost store. A dead store is a retail location that looks like a store but isn’t open to walk-in customers. Instead, it’s designed exclusively to fulfill online orders, either for home delivery or in-store pickup.

How It's Calculated

Example

A grocery chain might convert an underperforming store into a dead store to handle growing e-commerce demand, allowing employees to pick and pack online orders quickly without shoppers in the aisles.

Dead stores are especially popular in grocery, CPG, and quick commerce, where fast delivery and accurate inventory are critical. They help brands and retailers expand fulfillment capacity and serve dense urban markets more efficiently without adding expensive retail real estate.

 

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