I agree 100%.Well, all the issues with LDS’s is quite a dilemma.
We need them to some degree, but then we don’t, at least not like we used to.
I think the only way they stand a chance is if name brand gear got completely (internally) deregulated. It would be a total throat cutting food fight at first, but eventually all the chips would fall into their places.
Shops also need to look at what they can do that the internet can not, and concentrate on that.
I’ve been self employed for almost 25 years. I’m in the sign business primarily and watched how digital sign making took over the industry. I was always a hand letterer and I refused to change with the times. I’ve had to reinvent myself 5 times over to stay alive. I watched all the other sign shops switch and the prices fall. After a while they all were fighting over scraps for pennies on the dollar for what they used to get. The idea was that they would make it up in volume, but all the sign shops fired all their hand painters, and all those hand painters went out and got machines. Meanwhile, I stayed put. I’m still hand lettering and always seemed to find my market. Now hand painters are extremely rare and I can get 3 times the money for what they get in vinyl. I’m considered an “artist” now. The vinyl shops now hire me to go out and paint their awnings and stucco walls because they can’t do it. In my area (wine country) there are a lot of hoity toity businesses that want unique stuff and I can do stuff that the digital shops can’t do like antiqued unusual imperfect hand made signs that would be impossible digitally. They can have all the boring stuff anyway like the el cheapo chinese restaurant plain signs and banners.
Dive shops need to figure out something similar that the internet can’t do. They shouldn’t be trying to compete with it. Except for gear, the manufacturers need to stop their draconian policies with small dive shops, it’s not fair.
Industries are constantly changing and shops need to realize that. The internet is great. It is convenient, you can find way more info than a salesperson can give you, and there's often better deals that B&M stores.
But it can't do rentals (yet, UberEats style dive rentals aren't a thing yet, but maybe soon? Hint hint dive shop owners), classes, and air-fills. Dive shops that want to succeed need to change their business model and focus on the services side.
In 2018, you're just not going to beat the internet in product sales.