>I think that manufacturers should sell to physical toy stores at a lower price, and actively make sure online price is the same or higher than instore. but I dont how easy this is to police or even if is legal in some countries.

These days, many brick & mortar stores are a market inefficiency. It's simply cheaper to store & ship out of centralized warehouses (as it goes when you order online) than to ship merchandise to individual stores, which themselves have limited floor space and storage space (resulting in less variety of products) as well as a smaller potential customer-base (only those who live nearby). I don't see why manufacturers should be punished by selling at a lower price in order to sustain outdated business practices.

Stores that provide additional value, having unique goods that can't be found online or have cool atmosphere or such, will be fine.