Browniebasher,
That is a very good question and one I dont think there is an easy answer to
My view on it is such,
Any tackle shop (or any other retailer for that matter) that doesnt have some sort of on-line presence nowadays is committing commercial suicide. We have our own website, sell on this forum and also have an eBay shop, and they are all a crucial part of my company. Like it or not, the shopping habbits of the world have changed and people now like to shop from the comfort of their home. I had a discussion with another tackle dealer friend of mine about 4 years ago who said he would never sell online as it is the death of the High Street, and he wanted no part of that. He is no longer in business. My online side of the business alone employs two people full time and two part time
A lot of on-line tackle companies have a High Street shop as Ben says, myself, Anderson Angling, O'Reillys, GAC, Gary Evans, etc, etc and most provide a good online service. There are some that dont but given the power of the internet, they are very quickly identified
However, what seems to happen when they go 'online' is that the personal contact with the customer goes out of the window, and to me this is a big mistake. There is absolutley no reason why buying on-line has to be an impersonal experience and we always strive to maintain personal contact with our customers ordering online, as many on here will testify. Even phone calls in the evening Ben
On the price side, the internet is a quick and easy tool to compare prices. Yes, a lot of items can be bought online cheaper than in a shop for the simple reason, the 'bedroom sellers' (industry term and not a dig at anyone on here

) dont have the overheads that a High Street shop does. When you think a shop has rates, rent (or mortgage), heating, lighting, wages, NI, tax, VAT, maintenance, etc, to clear before any profit is made, the expenses work out substantial. I know what I have to make a day to cover these and it is a significant sum! However, is price everything? How often do you go into a shop for advice and not buy anything? It happens frequently and most shops are always happy to give it. Now you may save £2-£3 on a product online, but what price would you place on the information and service that your local shop provides and, more importantly, how much would you miss it if it wasnt there?? It is like anything, you dont miss it until it has gone and then it is too late. One thing to bear in mind though. If you find a price on the internet, always phone your local tackle shop and see what they can they do. You may be surprised!
On the flip side to your question, I think there will always be a place for the High Street tackle shop for two reasons. Firstly anglers like to pick up tackle and look at it or get a feel for it (you cant do this online) and secondly anglers love to chat!! Everyday, we get fellow anglers in the shop who dont spend anything but can talk fishing and have a coffee with the staff. This is all part of the service that the High Street tackle store provides that will never be provided by online sales or the supermarkets that sell tackle (but thats another debate!).
In summary, my view is that the way the High Street tackle shop is run nowadays has to change to survive. To me, it has to have the right balance of the traditional local tackle shop where advice is always available and staff ready to talk fishing (mine are, they take no encouraging to start talking fishing!!), and the online retailer who can offer a range of products, at a good price, backed up with good quality service.
This is what I am striving to do, and I am sure I will be told if I am getting it wrong