A major reason why there aren't any model shops nearby is the cost of rents. This means that a retailer has to maximise the return on every square inch of shelf space. This is why the only model shops that still exist, as far as can see, are those that cater for the RC enthusiast. The product costs a fortune (at least to my eyes) but the return on shelf space is enough to keep the shop going and pay the owner's mortgage. The general run of railway modelling, RTR or kits, just doesn't retail a at high enough price to pay the rent compared with the size of the shop.
A know that this doesn't apply to firms like Hattons but they have the space and the volume of sales to keep their head above water. But, having said that, even they moved out of their Liverpool premises and I wouldn't mind betting it was because the rent on their previous site went up to the point where the survival of the business was at stake. Liverpool is booming right now and it's about time too.
In addition, the sheer volume of products available on the net gives it an enormous advantage, and, it is available on a screen just front of you. My experience, and I do most dealings on the net or at exhibitions, that the net is more expensive because of postage mostly, but it is so much more convenient than ringing round trying to get a supplier for a must have item.
I case in point is when I wanted a lens hood. No more photographic shops in Harrow for the same reason, rents are too high. So I took myself off to Tottenham Court Road and found that not one shop had one. Again, the reason is that shelf space is at a premium because of sky-high rents. I came home, switched on the computer, called up Amazon and within a few minutes I had one, bought from an agent of Amazon in Germany. But, the article was made in China and shipped from Hong Kong. All for a 52mm lens hood!
If traders want to thrive they have to get an internet presence, a good internet presence, and put in the hard work at model railway exhibitions. In addition, the organisers of model railway exhibitions have to do their part and invite layouts which will attract modellers who will buy from traders. Too many layouts are simply a showcase for RTR and the traders who sell stuff to make a model railway lose out.
A shame perhaps, but there's no other way.
Regards