Riverhead, too, is de-emphasizing traditional retailing in favor of what Ms. Frankenbach calls a "tourist economy."

The company, he added, fears the impact of on-line business transactions on traditional retailing.

Merchandise returns, in particular, have been nettlesome for Internet stores, especially those without previous experience in traditional retailing.

Yet a closer look at the numbers suggests how much traditional retailing retains its hold, despite the rapid, up-from-zero growth of E-commerce.

So far they have generally located in or near traditional retailing centers of the city.

Some shareware programs prove so popular that the developers switch over to as a traditional retailing.

While costs for traditional retailing are growing, the costs for electronic business are getting lower, Mr. Arlen said.

GUS is trying to refocus its businesses, which include traditional retailing and information services (it owns Experian, the credit bureau).

There is no evidence I can see that sales tax revenue is down or that commerce in traditional bricks-and-mortar retailing is down.

Borders partisans say this combination of traditional and online retailing may help the company sidestep online price wars.