I live around a lot of LBS. Several are extremely successful because they set themselves apart. A couple are high end that offer things you can't get online - expert fitting, advice from extremely knowledgable people, the chance to see riders in action on trainers, and the ability to look at and fix things with bikes right on the spot.

I generally buy everything over the interwebz.
I've worked in shops for twenty years and over time I've learned how to do everything and have all the tools needed to build a bike from the frame up and the knowledge/experience to do so as well.

I live in a very small population area and there are not many riders. So saying the local shop is small, carries one brand of bike and very few parts. I stop in to chit chat and will buy lubes, etc.
Even their tubes are twice what I pay online...dirty secret time...shops make their biggest profit margin selling tubes...they cost little more than a buck each for a shop, imagine what the bit inteweb guys pay...and charge quite a bit.

I have more choices online and the prices are always better.
Generally I only buy tires, tubes, etc. online as I have enough parts squirreled away to last the rest of my life...when I moved from the Boston area I stocked up on parts I'd need at the bike shop I was working at...cassettes, brake pads, cables/housing, etc. to last a lifetime or two and all at very good shop cost prices.