How do consumers’ information frictions affect firms’ choice of location within a city? This paper combines an original data collection and a quantitative equilibrium model of consumer search and firm location to answer this question. It finds that information frictions (i) contribute to 41% of the concentration of sales in the central part of Kampala and (ii) limit the ability of high-quality firms to attract customers, allowing 37% of lower-quality competitors to survive. Counterfactual scenarios show that the introduction of an e-commerce platform would induce a large share of firms to disperse, while also causing customers to shift to high-quality businesses. By contrast, commonly adopted decongestion policies that discourage central clusters without solving information frictions would disproportionately harm high-quality firms by increasing consumers’ costs of finding high-quality products.