This happens in Finland too. Music stores (instruments), motorcycle accessories etc.
Internet - that's the deal. You can go to the local and see if the item fits your bill and then order it online, saving a couple of bucks (or more).
Internet stores have warehouses, they don't really need high cost staff that much, they can have things in stock more than the local stores.
So, all in all: Support your local businesses even if they cost a bit more. That way you can visit The Local merchant, have a good laugh once and a while and encourage employment. Small deeds will become big. If you don't do this, there might not be that local for too long...
Just my two cents to the discussion.