Interesting. This might well be one of those areas where you're not going to beat Amazon for national trends / tastes with physical locations, but you certainly CAN offer something tailored to your area that you can't get online. I still find it easier to browse a bookstore for new authors or books than to look on Amazon. I also get to skip a lot of the shipping damage Amazon does cause they no longer really pack books.
That all said - aside from books as collectibles, I'm probably 99.9% all digital because it's usually cheaper and doesn't end up with me stacking myself out of my home with books I have to do something with once I read them. I probably know most of the solutions to physical books but - I have to make a special trip that I never manage to do to donate them to a library book sale, I have to do extra work to try and sell online, I really dislike just throwing books in the trash. Much easier to not have a physical object at all.