The bottom line is SERVICE! Did he provide this as well or just sat behind the counter and complained about the mail order shops? Did he carry unique items and products, often invented by local modelers or just buy from the three large distributors?

Ma and Pop stores are thriving in America, the only difference is that the ones that are making money are first; finding a nitch product that the large retailers won't handle, two; marketing that product, and three, giving full ATTENTION to everyone who walks into the store. These proprietors say Hi, how are you doing and then strike up conversation that leads to helping you solve your dilema. I go to a third generation family owned art store that has this type of business philosophy.
I for one much rather buy local, I get it NOW, I can inspect it and not have to pay return shipping, and I don't know about others, but I much rather sales tax of .20 on a bottle of glue than $8.99 shipping and handling.
I go into a lot of hobby stores just to find A: They are poorly stocked and B: the people behind the counter are old timers who are smug and are too busy talking to the local coffee drinkers to give a pigs eye attention to a newcomer like me. Many of these owners may be too worn out to bother with having to redesign their business to cater to a tighter market.