You make a lot of pertinent points, and I agree with much of what you say.
However I would take issue with:
"Competing against internet shops is not radically more difficult than competing against another brick and mortar store."
I would suggest that the difference is entirely radical, certainly for many segments of the retail sector.
For starters, the big 'distribution type' companies pay barely any tax in comparison to bricks & mortar types.
Also with web purchasing, people can very quickly locate, compare, read reviews & technical specs, and find the best deal.
This is a radical change to the entire bricks & mortar retail business model.
I rarely enter a shop now (other than a supermarket).
I don't think that I'm alone.