Any Retailer who customers perceive as just providing shelf space for product have a big problem in today’s market place. The way to fight back is to provide something that customers value and competitors either can’t, or won’t offer. There are always ways to add value beyond price.
As just one example look at how many electronic games are advertised on TV with several people happily playing together. Yet no vendor offers space in-store for people to play together. This type of PlayZone can be a new source of revenue for a Retailer like HMV or Game as well giving customers the opportunity to try before they buy. Community and direct face to face engagement of other people with similar interests can not be duplicated by digital only reseller.