There are at least five bike shops, all good, and an REI and a WalMart, within a 5-mile radius of my house. (This is even more remarkable when one considers that more than 1/3 of this 5-mile circle is Pacific Ocean.

) The shops tend to specialize somewhat to reduce overlap, with one catering definitely to the racing set and another to kids and families. Although I am an REI member, I do not consider REI to be a "real" bike shop, any more than WalMart is.
Since my newest bicycle is almost 28 years old and the oldest is 57 years old, I obviously have to buy many of my replacement parts on the eBay or elsewhere on the Internet. However, I do buy clothing, tires, and tubes locally.
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"Far and away the best prize that life offers is the chance to work hard at work worth doing." --Theodore Roosevelt
Capo: 1959 Modell Campagnolo, S/N 40324; 1960 Sieger (2), S/N 42624, 42597
Carlton: 1962 Franco Suisse, S/N K7911
Peugeot: 1970 UO-8, S/N 0010468
Bianchi: 1982 Campione d'Italia, S/N 1.M9914
Schwinn: 1988 Project KOM-10, S/N F804069