I popped into my local music shop to buy a buy a ukulele (as you do) and the chappie said come back tomorrow as he had one but not in the shop. Back I went the next day but he was deep in conversation with a rep so I took the chance to browse round the nice guitars & ear wig. The gist of their chat was:
rep)     Take some of our guitars
shop)    I’ll have to spend loads and people just come in and try then leave without buying and get cheap ones online.
rep)    Take some of our guitars
shop)    Do you supply those cheap internet places? How much do they discount them?
rep)    10% maybe more - take some of our guitars (I didn’t think he was doing too well myself)
shop)    I’ll check the net and see how much they are there. They come in here, bash my stock about then say “I can get it cheaper on the net”. I tell ‘em “Never come in here again!”.
rep)    Take some of our guitars (he was persistent at least)
shop)    So and so’s gone out of business, so and so’s retired ….
rep)    Take some of our guitars
shop)    I’m having a sign made “this is not an internet show room”. And another telling people if they buy online it’s distance selling and they can demand their money back up to 30 days even if they’ve gigged the gear.
rep)    That’ll just encourage people to buy online, if they think they can send it back. (a pleasant change, though Mr shop didn’t think it pleasant)

I finally got round to interrupting and tried the uke then realised I’d left my wallet in the office!!!!

“It’s very nice but I can’t pay for it now - I’ll come back tomorrow.” In an attempt to stop him setting the dogs on me “I can get one cheaper on the net” (cue the dogs) “BUT I’d rather pay a couple quid more to try one, I’ll be back … honest”. whoops.

But that is the cost to the real shops. Not only do people spend online they want to check the stuff out so they add insult to injury by trying it out in their local shop first.