As I understand it, the shop is being closed due to local regulations, and not due to E-Commerce.
The business model was to combine an over-21 establishment with an under-21 establishment. All in a building that wasn't brought up to current fire codes.
I'm surprised that they were even able to open 6 years ago.
Now, you could argue that the business would have grown larger, had it not been for internet competition (which they apparently were already selling on the internet themselves). And thus, they could have dropped half of their business and still survived.
But then again, it would be a very different business than it is today... or was a month ago.
I suppose for my shopping, I like to see a price tag on everything... and perhaps even be able to pick stuff up and feel it.
Velocult was full of these pretty tables with parts displays... but not a price in sight.
I personally like to at least see prices as part of my shopping.
I wonder if part of VC was that they didn't wish to sell retail... at least not a lot. They really wanted to build stuff. So, one could walk over and look at the Chris King or Paul display, not to buy stuff, but rather as parts that could be built into a very expensive custom bike.
Portland already has at least two well established local bike shops with a strong internet presence. Probably more.
https://www.universalcycles.com/visit_us.php
https://www.biketiresdirect.com
And, Eugene, OR also has at least one local bike shop that would struggle without an internet sales model.
https://www.bikefriday.com
Anyway, internet and local shops aren't mutually exclusive.