I wouldn't be sweating it much at the moment if I was for example a local bookshop. OTOH an electronics retailer...
Take for instance what Bunnings has done to the Mitre 10 brand.
The moment there's a lower price that's at least as convenient and serviced, we're gone.
Another point of anecdata is what Amazon and other overseas stores have done to local stores.
Loyalty by older generations perhaps, but younger generations can see how much we've been screwed by local retailers for years.
E: the reason Starbucks failed was because they sold American style coffee, which not enough people like. Cafe culture is incredibly picky about exactly how to make good coffee, so all the chains that hire uninterested inexperienced kids off the street all have problems in places where there's a lot of quality coffee.
Aussies know a good deal when they see it: we adopted mobile phones and DVD pretty quickly. Whe alao know a bad deal too: see how Masters failed miserably.
His campaigning for eliminating/lowering the tax-free threshold on items bought overseas online was based on so much spinnning of the truth it's a wonder he didn't catch fire.
Of course a large part of it was price and selection. But it seemed though that it was mostly a me too type offering and unless there was a drastic reduction in prices ( drastically better range would have been very hard) people were already pretty happy with Bunnings.
Such is our supermarket duopoly.