Business School 101: Whether you finance your inventory or pay cash doesn't actually make much difference if it doesn't move. Costco or Walmart or any other retailer that is successful right now also uses credit to acquire inventory. (Costco has $10 billion in rolling debt and Walmart has $60 billion, btw. Both seem to be doing fine.)

And again, the businesses that compete with the internet right now are doing it by keeping their inventory costs in check. They have either moved most of their "selection" to online-only, or they have done away with consistent inventory across stores.