Clearly you’re competing against Amazon, so - that’s a big deal.

I’ve never done it. (Opened a bookstore.) But I’d say the only possible plan is to be hyper-local. Focus on events that make your shop an active of the community.

• Local authors signings, readings, and release parties.
• Be a book blogger, post reviews and book biz news. Have a podcast. Focus on those local authors first and expand from there.
• Maybe put a writing space in your store and host writing events.
• I personally would become a publishing house. It’s easy these days to self publish, so why not help out your own community? Have your own annual short story collection for instance - featuring your local authors.
• All that above does depend on you finding local authors - but you could just as easily develop a niche around a genre. Substitute “Mystery/Thriller” or “SF/Fantasy” for “Local Authors” and you have a theme for your store.

Best of luck!