This issue, IMO, isn't limited to camera shops.
Some of my favorite music shops in NYC were plowed under by the Towers, HMVs and Virgins when they came to town. (Of the three, only Virgin remains, and I openly question for how long.) Same with bookstores, although here in Park Slope, most of the indies are weathering the local B & N relatively well (althouugh one used bookstore might be closing up shop).
Thing is, I have't really had a "regular" small photo store I liked dealing with in a while. Camera Traders was the last one I dealt with on a regular basis (bought my entire Hexar RF system through that store, all new, among other big-ticket items over an eight-year period). Given the fact that they were a mere one block away from Adorama, I was amazed they held on as long as they did, although having a strong online presence probably helped (they're still online, after closing the brick n' mortar part). Yes, there's Photo Village (thankfully), and I'll likely check them out in-person from time to time, as well as Photo Habitiat, which is in essence a sort of spin-off of the old Ken Hansen, including several Hansen veterans. These shops seem to do well, but they specialize in catering to the hardcore pro/serious amateur market, do a solid used-equipment trade, and market the daylights out of themselves online. If you don't have a reasonably polished Web presence, you're as good as dead in the water, even in NYC. (I should say especially in NYC...have you checked commercial rents here lately?)
- Barrett