It does seem that the answer to success involves incorporating the web into the LBS. It was pointed out back on p1 that internet businesses (I think the example was Competitive Cyclist but I'm too lazy to go look) have a literal world wide customer base. This is true of the fly-by-nighters that psimet alluded to as well. No physical store can ever match that and there is also the issue that, generally, the bigger the metro area, the more expensive the retail space.

How to do this? The answer requires more expertise than I'll even pretend to have but places like this place in Texas seem to have a clue. I've bought Campy from them at prices even PBK didn't beat and I'm told they have a very fine quality brick and mortar presence as well.