The niche doesn't even really matter here. It could be car stereos, music, books, alcohol, grocery, whatever. I definitely think the path to survival for small retail shops going forward is going to be expert level knowledge and customer service. The days of people patronizing your store just because its physically nearby are numbered.
edit: Also, and this is totally anecdotal, but I personally shop at several places that aren't quite the cheapest (though none are TOO relatively high priced) but I continue to shop because the staff are far more knowledgeable than I and their assistance is well worth the extra ~10% in price.
This is the general trend in most of America. Many now fall into one of three categories. Highly rewarded entrepreneur / chief officer, educated and well paid but fiercely worked salary, or minimum wage serf. The bands are also becoming more defined and logarithmically separated. ~$16000 (2^14) [serf], ~$90000 (2^16.5) [educated salary], $500000+(2^19) [wealthy / gentry]
Further, the middle section is mostly bleeding downward due to factors like the above mentioned layoffs (Sam's Club did similar), the increasing relative cost of education / health care / other barriers to entry, and the inflation adjusted erosion of buying power.
Its an argument to say the path is towards expert service, yet with the range of social review / recommendation pages / boards available now (much of which Amazon itself cultivates), even newcomers can quickly become informed if they are so inclined. No wonder many now prefer to use automated isles rather than human checkouts. The staff provide little and often just push annoying suggestive sells.
In the end I just bought from a uk chess specific supplier and all my questions where answered on the page.
Now that's a niche I acknowledge that but still with all their data and product ranges a small online retailer beat them.
This part is probably going to be Amazon's undoing if they don't change their ways. If I'm buying a charger and know what I want, I really cannot safely buy from Amazon. It is much safer to buy from a Best Buy in that situation.
I always go to Ace first because of that guy. It's one trip to Ace vs the two+ trips to Lowe's when I'm doing something new.
Amazon can sell the parts cheaper, but the knowhow they can't provide is invaluable.
Bring your smartphone with you when you go to the store. That way after the staff tells you what you want, you can order it from amazon without leaving the store.
Don't rely on altruism for change. Expect the worst out of people.
I go to Amazon when I know what I want. I go to a store when I need staff to tell me what I want.
One day Amazon will finally learn to curate their products in some vaguely coherent sense of order instead of an infinite pile of semi-differentiated search results and then Best Buy is really screwed.