Many people dont want to hear that, but its true, 99% of my kits I buy online, but I would say that only 2% of my supply's are bought online, and that is what I use the LHS for, to me , its not cost effective to buy say a jar of paint online, not when most online HS charge around $4 and up for shipping, it only makes sense to order a bunch of stuff, but its rare that I will buy more then two or three jars of paint at a time.
So for me, I still have a need for a LHS, but its not for kits anymore really, and when I want to buy kits from Revell/AMT/Moebius, we have local plastic pusher to buy from