All this fear mongering about LBS's going out of business, that's not going to everr happen. Here are the facts according to National Bicycle Dealers Association:

Bicycle sales are accomplished in this country through five primary and distinct channels of distribution — specialty bicycle retailers, mass merchants, full-line sporting goods stores, outdoor specialty stores, and "other," which is comprised of a mixture of retailers (including Internet sales).

The approximately 4,100 specialty bicycle retailers commanded approximately 15% of the bicycle market in terms of unit sales in 2012, but 52% of the dollars, a dominant dollar share. Dealer price points generally start at around $200, with the average at $673, though prices can range into the thousands. While the number of specialty bicycle stores has declined in recent years due to consolidation, they are responsible for approximately the same amount of business through these fewer (but larger) stores today. This is the only distribution channel that maintained or increased average retail bicycle selling price in recent years.

Department, discount and chain toy stores (mass merchants) sell mostly price-oriented products. Approximately 74% of bicycle units were sold through the mass merchant channel in 2012, representing 30% of the dollars due to the average selling price of $78. This channel's market share trend line was up from 2011 in new bicycle sales.

Chain sporting goods stores sold approximately 6.5% of the bicycles in 2012, and 8% of the dollars, at an average price of $240. These are merchants that fall somewhere between mass merchant and bicycle dealers on the spectrum, and include stores such as The Sports Authority, Champs Sports, JumboSports, Sportmart and Big 5. This channel's overall market share was flat 2012 compared to 2011.

Outdoor specialty retailers sold approximately 2.5% of the bicycles in 2012, representing 7% of dollars and an average retail selling price of $574. This channel’s trend line is slightly up.

The "other" (this is the internet sales) category sold 2% of the units, representing 4% of the dollars, with an average price of $345.

The above comes from here: http://nbda.com/articles/industry-ov...-2012-pg34.htm

Now everyone needs to relax, internet sales is accounting for the smallest percentage of all sales and dollars.