Feb. 17, 2012
Major retailers, including Gamestop, Gap, J.C. Penney and Nordstrom have each opened and closed storefronts on Facebook in the past year.
Facebook, which this month filed for an initial public offering, has sought to be a top shopping destination for its 845 million members, according Bloomberg, but the stores' quick failures show that the Menlo Park, California-based social network doesn't drive commerce and cast doubt on its value for retailers, said Sucharita Mulpuru, an analyst at Forrester Research in Cambridge, Massachusetts.
"There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop," Mulpuru said in the story. "But it was like trying to sell stuff to people while they're hanging out with their friends at the bar."
Read more about social media.