In what ways can a brick-and-mortar store improve their business model to compete with this? Providing excellent customer service and expertise won't do anything to address the problem (as I can always suck up a salesperson's time and then go home and buy the product).
On the other hand, Apple stores have this exact same problem...even more so because a) their markup is even higher than electronic retail and b) the literally allow you to see how much more expensive their prices are compared to online listings, right from their own demo computers.
I don't buy much from the Apple stores but when I do, I feel even more compelled to continue my dumb-courtesy and pay the extra $10-$20 in-store. But I don't how extendable the Apple magic is to every kind of retailer