This is not totally true. It was very common to have markets right next or even under train stations. It was also common for trains to do milk delivery with sto

This is not totally true. It was very common to have markets right next or even under train stations. It was also common for trains to do milk delivery with stores close to rail stations. You also had trains going threw cities on street levels to unload. But this isn't really the right debate. Sure you need some last mile in many cases, but that's also often true with large trucks. The simple fact is a far, far, far larger amount of transport could be handled by train if society put the right insensitive in place, rather then the completely backwards intensives that exist now. In Switzerland its quite common for example to have even fresh food transported by train, the largest retailer works closely with the rail company and delivers to a number of regional depots where smaller (sometimes small or medium) trucks then take it to individual stores. We don't have these Wallmarkt supper stores that Americans (unfortunately for them prefer). Its very common that larger stores, like Ikea actually are directly connected by the train network. There could actually also be a lot more done to do cargo delivery by tram. This has started in a number of European cities. In Zürich the Cargo tram is currently mostly used for extraction of waste (like e-waste), not yet delivery, but it has potential.