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Possibly not the greatest break down, but it's no wonder Amazon etc can undercut stores so easily. Personally I think shops do have one advantage over online shopping... browsing!
I imagine most people who want to buy a specific CD will look for cost. Your average high street has higher costs & higher pricers so yeah they will lose out... however often I'll go into HMV, Virgin etc to have a gander at CDs etc and buy one. That's not as likely with online shopping which is more "search" orientated. Perhaps rather that focusing on the price they should look at the strength of high street stores and look at providing the consumer with more to browse?
Then again, Amazon has recommended me CDs/DVDs/Books that I've gone on to buy.
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