Absolutely. There's no way that Barnes & Noble (or any retailer) can compete with Amazon on selection or price. Where they can compete is on discovery.

Amazon is really great on converting high-intent customers, but terrible at discovery. (This is why it is beginning to open physical bookstores.) When was the last time you went to Amazon to "browse" for books? The physical retailers that can compete in this space will have a niche and a carefully curated selection of books to capture the type of people who want to relax and find a good book to read, rather than the people who already know what they want.