Small retailers have long relied on strong customer relationships. The internet has added an important new dimension. Retailers now have to web-based user experience as well as in-store customer experience. It's challenging to keep up, but now we have a bigger bag of tools for staying connected with our customers. 

NY Times: With Web Sites, Local Boutiques Grow, 2012-Aug-1, by Marisa Meltzer

“A customer whipped out her phone and asked me if I could price match a pair of Swedish Hasbeen clogs with Amazon,” said Ms. Mautz, who did not match Amazon’s price (the customer bought them from her anyway). “It makes me feel like what I need to do is become more specialized, find smaller, newer lines, and get more things that no one else has.”

Alec Stuart, an owner of Stuart & Wright in Fort Greene, Brooklyn, does not compare his store to larger competitors. “Being such a small business, there’s only a small staff and when everyone is really invested, it translates,” he said.