The one remaining local photo store is quite frank in saying that the only reason they carry any traditional materials is to supply the local colleges. If I want something besides T-grain emulsions and RC paper, they'll be happy to order it - at nearly double the price I can get it over the Internet. They seem to prefer that I order from someone else, so I do.
I see the same kind of posts on my music forums. There are still local music stores, but they are having a harder and harder time. Kids come in and try out several brands of saxophone, for instance, decide which they like, then order it from the Internet in order to save $50 on a $500 instrument. This is very foolish as the local music store would include any needed adjustments in the price.
We're in a market that's changing very much. Who knows how it will shake out.