HMV is still around. I went into my local a few days ago and picked up the Last Samurai on Blu Ray.
I'm not sure where you are in the UK, but clothes stores are fine where I live.
In terms of physical media with music CD, vinyl and now even cassette tapes are selling well. Not as much as in their prime, but still well considering we live in a world of Spotify. Same with films. People are still buying films on disc and studios are still releasing them.
Games are a little different. A lot of games releasing on disc now don't actually have the game on the disc. Instead, it's a code a few MB in size that just downloads a digital copy. You then have a lot of publishers just completely ignoring physical media and releasing their games digital only, such as Alan Wake 2 or the console version of Planet Zoo. There is a high chance the next generation of consoles don't have a disc drive, so no physical releases at all.
With more people moving to digital and publishers not releasing physical discs, what hope is there for a physical Game store?