Can't just blame online sales. If it were that simple, ALL the box stores would be failing. Sears, KMart, TArget, even Macys. If I am shopping for gifts, I do a lot online, but if I want a bag of underwear or socks, I sure as hell am not going to order it and pay shipping.
Sears focused on a market segement that is shrinking. They need to adapt to the market or fail completely and vanish.
Interesting, I was reading an article yesterday talking about other stores' woes including Best Buy. Recently I was in the market for a TV stand. I found one on-line at Best Buy's website I liked, I wanted to get it from the store in town, but the website said it wasn't in stock there. I went anyway to see what else they might have, and not only did they have the one on display, they had them unopened in the back.
I should have taken that as a sign and bought it on-line anyway, but I decided to buy it there. A salesperson helped me right away, but I had to WAIT and WAIT for someone to get it out of the back, and while I was waiting someone was trying to sell me Direct-TV the whole time.
Speaking of Macy's, I was in my local store not too long ago and there appeared to only be ONE salesperson on the entire second floor. Checking out there was not very speedy either, but at least no one was trying to sell me a satellite TV package.
So while I agree with you that internet sales aren't entirely to blame, I'd also say poor customer service has a lot to do with these stores' problems too.