I would not buy a bike on line, but everything else, yes.

None of the bike stores around here seem to be doing badly; the one I bought my bikes at is making a nice profit (they do cater to people who can afford boutique label bikes, but also sell Giants and a lot of kid's bikes). The other LBS near me expanded last year, has much more clothing, and now sells home fitness equipment. They also have expanded their x country ski selection, which they have always had.
You know, last year, DH and I went to Harris Cyclery, of legendary fame. We were just beginning our search for custom or semi custom relaxed geometry road bikes that we could put couplers on. I was stunned by the horrible condition of the shop, and even worse, the way the person who helped us was bragging about their new fit system. He didn't know what he was talking about. When I said I was not interested in bar end shifters, it was like a case of reverse discrimination. We ran... maybe they have a lot of parts, but, they do most of that business on line. And maybe it's a good thing, because the shop itself was not nice.
One of the reasons I will buy full price clothing from TE or Terry is because of the focus on meeting women's needs and the community that has grown around both businesses. I've had personal service from both. Still, I look for the sales in both places. DH, on the other hand, never, ever buys bike clothing full price. He doesn't have to; everyone makes and sells men's size medium and puts the items on sale. Half of the clothing companies don't even make their products in women's extra small (PI, for example), so I can't afford to be choosy.