There have been several attempts to describe the recent phonemona of e-tailing and the competition of e-tailers with traditional retailers. However, it appears that the previous models exhibit some shortcomings. With an extension of the well-known circular city model, this paper attempts to relax those limiting assumptions and addresses various issues around electronic commerce: whether e-tailing will eventually drive out traditional retailing, whether e-tailing will necessarily increase competition and lead to lower prices, and whether all the consumers will be better off with more alternatives to choose from.