Charity shops actually get pretty decent footfall at least in my experience (but maybe that's just where I live). More than that they have a few structural advantages other than tax breaks which means they are able to compete where traditional retail can't - things like low staffing costs (if they use volunteers), no/very low inventory cost, and they are usually able/willing to sign up to lease terms which more commercial enterprises would either struggle to secure, or would be unable to live with (eg almost no security of tenure).

This. People forget how much more stuff was niche or industrial/b2b only before ecommerce came along.

Industrial businesses were less rigid about avoiding retail sales than today but it was still way more hassle and generally "the dark ages" comparatively.

Part of the problem is that there's not really a way to ensure brick-and-mortar captures its value-add. It costs a lot of money to rent and staff the space, and there are real benefits to being able to browse in a real space (depending on the store in question, they can offer curation, close examination of the product, the sales staff can sometimes offer valuable suggestions or opinions, you can try on clothes, you can check compatibility of some products directly in the store or get a sense of how they actually look), but nothing but friction or a vague sense of guilt prevents a customer from using the store to choose a product, for free, and then ordering it for cheaper online, which completely screws over the physical location.

Possible solutions to this include 1. More stores introduce a paid membership. This is not a bad idea, a store pays for the cost of the physical location with the membership fee and has similar prices to online stores, and they have an incentive to maintain product quality, Costco is very successful with this model, but I'd be worried that that the model is begging for enshitiffication, you could really cash out on the store's reputation by lowering the product quality and increasing the costs and relying on the friction of the existing membership to keep customers for a fair while. 2. Stores focus on being an enjoyable experience, and hope that if you're spending enough time there, you're going to want to buy something. This is what Barnes and Nobles is doing, and most surviving malls. 3. Some sort of policy fix. I'd be in favor of an online shopping "tariff" designed to bring online prices in line with what it costs to run physical locations, collected by the feds and redistributed to localities. Has the minor downside that everyone but me would hate it, and it would be so monstrously unpopular that it could never happen. If we could figure out a way around that, though, it could be quite good.

Also supermarkets. The rot set in before the internet came along.