Let me clarify. I agree that in general having a centralized warehouse handle online orders is better than having retail stores do so, for the same reason why FedEx and UPS are more efficient in using a central transit hub in Kentucky/Tennessee even for an overnight package going from one location to another in the same city.

But surely even better is both? Have an online warehouse handle most orders, but have the inventory system integrated across warehouses and stores, so that if it turns out that an item is a) available in a store in the same metro area as the customer, and/or b) is out of stock in the warehouse, a store employee can pick and pack the order during a free moment and have the order arrive at the customer the next day?