[Ohtrahddis]

A phone's native location capabilities (as they are currently) are limited to GPS pretty much - which is often insufficient for figuring out if a customer is inside the JC Penny or Macy's in a large shopping mall

Even better (for stores), they want to be able to see if you are walking past the Men's Shirts section and perhaps send you a notification that the specific shirt you were looking for in the past is now on sale - thus individualized local content!

For more, see things like Estimote: http://estimote.com/