They need to put smaller stores in urban areas and abandon the crappy big box format. They then need to make purchasing online or in-store seamless with perks like free ship to store and expedited shipping and checkout when buying in-store.
This. I dont have any allegiance to one paticular retailer. I go to whoever is going to give me the best price, on a rare occasion Best Buy has the best offer for a bluray I am looking for but that's about it. Every other item I look to purchase can be mailed to my house tax free from Amazon with usually a 20% (min.) cheaper price. I understand they have way more overhead than an e-tailer but they need to adapt to the business model or there is no way they can survive. I hate whenever I go there and see people bringing in their desktop to the Geeksquad to get repaired because I know they are going to get raked over the coals with the prices they charge.
They need to learn this lesson at Best Buy...
If they were to look smartly at Amazon they can see its vulnerability very well. Amazon is renting space to put shipping lockers for people to conveniently pick up their packages due to the ugly side of online ordering (needing to be home to get your package) and UPS is charging consumers for "convenient" delivery. The obvious way to press against Amazon is to drop the Big Box format and focus on a smaller store format that can stock the items that roll out the store quickly while giving customers who buy online a convenient place to pick up their packages and do returns.
Amazon is vulnerable, but the brick and mortar guys are too stupid to attack correctly.