Quite honestly this is hardly a surprise to me. My nearest Ritz is in a major suburban mall in a location that was formerly part of a smaller regional chain (Camera Shop). Back when, it was near where I worked and convenient to stop by at lunch time or on my way home. Under the previous ownership there were mature, knowledgeable people running the place. The processing of C41 was done right there by a woman who obviously knew what she was doing and I would get a wave and a hello when I brought film in. Shortly after Ritz took over, all the original staff were gone. On one occasion I came in to pick up pictures and they couldn't find them; I had to come back the next day. Another time I picked up pictures and though I had asked for double prints, there were only singles. I was told if I gave them 20 minutes, they'd do another set, so as I had some other shopping to do, I said OK. As I was returning from my tour of other stores, I saw the young woman who'd been running the machine wandering off across the mall with another young woman, and thought "oh good, they're done." When I got to the store, the guy at the counter went looking all over the place and couldn't find the pictures. I ended up waiting until the operator came back from her break -- now wouldn't you think she'd have left them at the register --- "here's that guy's extra prints." Credit where credit is due, the counter guy was obviously embarrassed and very apologetic. They also gave me the missing prints at no charge in the earlier incident.
Then a pickup up of five roll's worth disclosed that one was somebody else's prints. That eventually got straightened out, but was pretty much the end of my association with Ritz. I felt zero confidence in leaving film I'd put money and effort into the midst of such chaos. Interestingly, when I ferreted out one of the few remaining "pro" shops in a nearby town, there was one of the former Camera Shop employees behind the counter. "Yeah, we've been getting a lot of their old customers."
I don't think you can truly say the Internet killed them, as they also sold online -- that's how I bought my Canon Elph Jr. I think it was primarily a lack of attention to basic organization and customer service. And also no depth of stock beyond the most trivial consumer items; they are supposedly a source of Lowepro and Tamrac bags but seldom had anything beyond a few P&S pouches in this store near me.