It is largely taking over even in Africa. In Kenyan Urban areas eretailing is viewed as effect efficient hence more rewarding. Consequently it is gradually being adopted in some rural settings
E-tailing is a disruptor in retailing. Even though it is minuscule having less than 5% of total retail sales in India , it is purported to be growing at 30% annually. Considering the geographical and demographical factors, my guess would be that both would co-exist in spite of government regulations and curbs on discounts due to the convenience e-tailing provides. In developed countries too, both will co-exist due to different advantages they offer to customers.
You can still find the small stores in some neighborhoods market and their slightly more common in smaller cities, but more and more of the retail space is being occupied by large local players.