My retail buying habits have changed significantly over the past 10 years. Used to be, a business trip to Chicago meant a mandatory stop at JRM and a financial impact to be in the $200 - $300 range. Now, I cannot remember the last time I went there.
The online model is quite compelling, especially if you know what you are looking for. In 2006 alone, the three largest used record stores in KC have shut down. The remaining retail stores are awful.
I still think that a independent record store could work, although maybe I am nuts. For me, the key would be service - in particular, the ability to recommend something fresh. 99% of the recommendations I receive now are online - from some critic or here. Frankly (aside from this place), my tastes seem to be out of alignment with many critics, especially on the rock side of the house. So in terms of directing my music dollar, I would definitely spend with a local independent with a great staff.
The key of course is "great staff". There is a pretty cool indendent store in nearby Lawrence (a college town), but the staff is rather clueless. Still, it is fun to talk music with the owner when he is around.