Sure, except for the part where it's true. Hell, it's even in their 10-K filing. Go ahead, read it. You can find it online.
The problem with Google opening retail stores is that Google is trying to drastically change their business model from one where advertisers are their customers to one where the dude walking down the street is the customer. Right now the dude walking down the street is a *user* - he recognizes the Google brand name because he uses it, but he's never drooled at the mouth over a Google product. He's drooled at the mouth over Apple's Macbooks and iPads, he's drooled at the mouth over Coach leather wallets, or Sony's Grand Wega TVs, his wife drools over Prada and Chanel bags, these are products they aspire to own, brands they want to show off to their friends and to other people walking down the street. Aspirational brands.
Google was only aspirational in the early years when only the cool, in-the-know people used Google and the riff-raff used Altavista or Yahoo. Google is now just a utility that everybody uses. Everyone knows the name, like Microsoft, but nobody wants to pay for the privilege of getting more use of a utility. Especially one that makes their bucks out of shoving advertising down your throat.
Google's mistake is that they need to be following a multi-brand strategy. Google is the search engine/utility brand. They should acquire a nice aspirational technology brand that they can use to market consumer products. Far smaller companies in other market segments follow this strategy with much success when there is an inherent incompatibility between their primary's brand's meaning and identity and their objectives with part of their business.
A company like Roku that offered a somewhat sexy, consumer electronics brand would have been a good acquisition target for Google, for example, rather than their miserably failed Google TV strategy. Roku would have to have been even more sexied-up to work out properly though. Maybe even better - a perpendicular brand like Lamborghini from the automobile space that already licenses well in non-automotive products and could be extended into a full-fledged, full-line consumer electronics brand of aspirational products.
If you want to play in a space, you got to do it right. There's no excuse for dicking around when you have the kind of resources Google has.