I believe there are a number of examples where industries failed to adapt to changing behaviors and technology - the music industry pops to mind. The big break through comes when you stop thinking about one versus the other and start thinking along the line that I have a brand with value and recognition - it happens to be accessible online and physically. The brand core strength must be carried through out. Then, the next step is to see where the customer experience is benefited and hassles eliminated from the channels available.

A retailer should know it's about delighting the consumer. They need to make the shopping experience a unique one and one that says "wow, I love shopping with them because ....". It's that because....that can differentiate the retailer from their competition.
Technology is now capable of allowing retailers to understand who their most valuable customers are and what drives their purchases. On-line and off-line shouldn't be viewed differently but part of the whole plan to delight that consumer. They are "tools" in the retailers "tool box" to be used to delight that consumer.
For example (totally hypothetical)... Wal-Mart could delight the consumer with an on-line message regarding a Black Friday special on large screen TV's based on the consumers on-line behavior that they are going to purchase an big screen TV and give them a delightful experience off-line if they allow the consumer to purchase that product earlier than the general public if they have a Wal-Mart credit card. On-line, off-line, credit card together as one to delight the consumer.
Von Maur could offer an on-line communication of upcoming new fashions and invite the consumer to an off-line experience of a private "members only" fashion show at one of their stores giving the consumer first chance to buy the new fashions before the general public.
The industry is still thinking too small!! The INC article, which I really like and they are on the right track, mentioned on-line consumer behavior and how that could drive a targeted higher ROI ad. Technology has the capability to be MUCH than seeing a consumer researching a product and serving them up an ad. Understand who are your most valuable customers are, what drives their behavior including but not limited to purchases, and delight them on and off-line with their experience!!!