Back in 1996, when the "pure-play dot-coms" were getting ready for their IPOs, the Trends editors were commissioned by a Fortune 100 Technology firm to forecast the future of retailing and the impact of the Internet upon it.

As we predicted, "pure-play e-tailing was essentially a mirage," that produced many losers and few winners. We also predicted that those retailers who successfully integrated the Web into their traditional operations could reap big benefits. Since 2000, many companies have attempted to build such brick and clicks enterprises, with varying degrees of success.

Let's examine the facts and implications related to this trend.

Back when many retailers were worried that Internet competitors would make them obsolete, they rushed to set up Web sites that competed with their own stores. Shoppers often could find a lower price on-line than they could in the aisle, even though both sales channels were owned by the same company.

Of course, that only occurred when the same products were offered in both channels — which didn't always happen. Customers who located a product on the company's Web site became frustrated when puzzled store clerks told them the product wasn't sold in the store. And shoppers who wrote down stock numbers of products in the store so they could order them on the Web site all too often discovered that the numbers didn't match, or the products were not offered on-line.

To solve those problems, companies that once debated whether they should pursue a "bricks" or "clicks" strategy have been working to integrate both approaches. Ideally, a customer should be able to find the same merchandise at the same prices on-line and off-line, and be allowed to return products through either channel.

According to a study by Forrester Research, 63 percent of large U.S. retailers currently sell on-line, and 52 percent of those accept in-store returns of items bought on-line. Thirteen percent allow customers to pick up products in the store after ordering them on the Web site, which saves delivery charges for such items as air conditioners, television sets, and barbecue grills.

With retailers trying to figure out a model for integration, there are many potential paths to take. Consider how Staples, The Gap, and Borders, profiled in a recent Wall Street Journal article, are approaching this challenge.

At Staples,...