It is reported in the Bookseller that Blackwells will open a new bookshop in September to take over from the previous bookseller at Northumbria University.

http://www.thebookseller.com/news/blackwell-moves-northumbria-university.html

So the evidence remains strong that Blackwells is still supporting actual bookshops. It will probably be after September that students in Exeter will realise whether or not they can manage without a bookshop. There is no sign of any new retail activity at St Lukes though there is still an empty shop.

Meanwhile Exeter Central Library have started an arrangement with Overdrive for lending digital content such as e-books and audio books. They are still planning to invest in new physical buildings. But he question is still there, if a university is better with a bookshop demolished, what is the case for a library?