The problem with the large retail stores is that the people sitting upstairs behind the tinted windows making the decisions of what to buy, really have no idea about how massive the gaming market could potentially be for them. They are the old fogies who can't grasp the idea of gaming as being popular, other than with a few kids. The buyers etc haven't a clue.
Look at overseas, where gaming is a massive culture there and businesses actually want to make money. Even the 7-Elevens there sell fucking games! SA is still a LONG way off in being even remotely competitive. And that is also why publishers/developers don't really rate SA as a viable market to pump money into. Look at how we had to beg for COD:Blops servers.
On topic though, if retailers want to compete, they need to find an angle of attack and nail it. Personally, I still prefer to go out and buy a game and be able to hold in my hands. I have nothing against digital if it is the only way or is the price is good, but holding that shiny new box and tearing open the plastic is very satisfying. BUT, this is where some retailers fuck it up. Look and Listen, as already mentioned, store the empty cases on the shelves and the discs & manuals in a drawer at the counter. This is UTTERLY unacceptable. Now how do I know that the pimply faced, snot nosed teenager hasn't copied they keys and game and used them??? So it's okay for me to purchase a opened game, but dear Deity of Gaming, do not even consider returning it, because you have opened it!!!! As for pricing staying high, retailers must negotiate price protection with importers/publishers. If Steam/publisher runs a online promo at half price as is often the case on Steam, then retailers must be able to do the same. The onus is then on the retailers to follow up and recover their money. But SA retailers like I said don't really see gaming as a significant money maker and as a result don't put much effort into it.
So I say to retailers, stop whining and bitching and find ways to be competitive in your own right!