When I was a teenager and modeling HO, I could walk or ride my bike to my LHS (and there were quite a few around town). Now there are only two LHS that I know of in town that carry O-gauge. Both are 20+ miles from my house, and my truck get 12 miles/gal. Occasionaly, I take a trip to the closest one. I have purchased most all my track from them, but only one engine and a few cars.
The internet has made shopping at home just too convenient. The pricing competition is unbelievable, and for now, I don't have to pay sales tax.
I know that I am just another one of those consumers that has contributed to the closing of LHS's. In the last 20 years there are 3 LHS's that have closed that were relatively close to my house.
But if I had a LHS in a somewhat close proximity, I'd give them the benefit of my business, providing they could supply, especially large dollar items (Legacy), within 10% of an internet store price.