The potential of Internet retailing is widely promoted yet some retailers have been slow to embrace the technology. Department stores typically have only an information presence on the World Wide Web. This paper describes a pilot project by one of Australia’s leading department stores. The case is used to describe certain lessons about Internet retailing and the use of pilot projects. Department stores’ decisions whether to adopt electronic retailing are analysed in terms of the opportunities and threats that face them and the capabilities required for success. The conclusion is reached that, as yet, there is no obvious place for established department stores on the Internet.