Which statement about distribution centers is true?

• A. They are less expensive space options than retail stores
• B. They are more expensive and less efficient than stores
• C. They cannot prepare merchandise for sale
• D. They are located only in urban centers

Answer: (A)

Distribution centers are facilities designed to store large quantities of goods and move them efficiently through the supply chain. Because their primary role is storage, sorting, packing, and shipping, they are optimized for cost per unit and throughput rather than for customer experience. This makes them generally less expensive per square foot than retail stores, which must invest in showrooms, fixtures, and staff to serve shoppers. Distribution centers routinely prepare merchandise for sale—picking items, packing them, labeling, and staging orders for shipment to stores or directly to customers. They are typically located near highways, ports, or other transport hubs in industrial areas to maximize access, not restricted to urban centers. So the statement that distribution centers are less expensive space options than retail stores is the best fit.