That's globalization, internet communication and cheap transportation all together creating impossible competition for the small retailer.
Case in point, I was looking for high end wheels for my road bicycle. Set my choice on Shimano Dura-Ace Carbon Wh7850. Local retailer price: $1599 + tax. OK, he was willing to let them go for that price, tax in. Chain Reaction Cycle in UK sells those for $660 CDN and free shipping. Include the taxes when they land in Canada and my total was $745 per set. I ended up buying 2 sets.
I'm sure his cost form the local distributor was higher than what I paid.
Maybe the local retailer has to change it's business model and order his stock from the cheapest source??
I agree with the premise but the problem seems to be is that Manufacturers simply don't value their Canadian distributors.
In order to be an "Authorized" dealer they need to buy from the source the manufacturer directs them to. But being an authorized dealer does not give them advanatge of the best pricing. It gives them ability to maybe offer warranty service others can't but that's only effective on certain items and its only worth so much to consumers.
If these autorized dealers aren't bring in above average profits for the manufacturer (by buying at high prices) then they feel they don't need them.
If Jose tire won't buy 100 tires at 200$ each then fine I'll sell 200 tires to Supertire distributors in the US for $125 a pop and make more profit.
These local retialers only survive so long as the majority of the market clings to the standard (comfortable ) way of doing business face to face or locally. I know my parents would never buy tires online. They are always going to go to the local guy becuase that's what they have always done. As the demographics change and more and more younger people come into the market for say tires that are comfortable buying online the local retailers will find it harder and harder.
Its going to take some time but eventually a lot of these guys are going to get squeezed out becuase the customer base will eventually change to a point where most will feel OK shopping online.
Even though I buy things online there are still things I will pay quite a bit more for to buy from a place I can get face to face service. Audio equipment being one. I know I can get stuff much cheaper from a non appoved online vendor but Its just not worth the hassel to me if something breaks to be without my TV or home theatre for a long time if something breaks.
The more mass market the product becomes the less brick and mortar vendors have to offer.