Bookshops in Australia are closing their doors quite rapidly if I believe everything I read. A major chain (Borders/Angus&Robertson) has gone into receivership. And, many suburban shops cannot compete with online and supermarket prices.
I do a mix of both. When it is a specific title, I will often source it online. When I am browsing, I still purchase in store. I shop at Dymocks in the CBD, here at Berkelouw, and across the road in Ariel Bookshop. I used to buy from The Book Depository, but they were taken over by Amazon. So, I swapped to Fishpond. I have to be careful what I choose. If the book is cheaper because they have used inferior ink on inferior paper, causing the print to 'bleed', I find the book too hard to read. If they shrink the font size and reduce the white space, equally I find it hard to read.
I know that is how they reduce the prices, so I am prepared to pay to enable me to check that I can actually read the book.