Certainly tough to run any business so I don't want to demean that because doing so successfully in ANY industry has gotta be one of the toughest things to do. The LFS business has had a lot of changes but I think the hobby is actually growing according to the APPA and while a lot of that money is going to online retailers for both dry and live goods and even local clubs trading more frequently there are a lot of examples of LFSs that have adapted and are not just maintaining business but actually growing. There are also a lot of examples of stores failing and closing but like any business, you have to adapt or you risk dying. When local bookstores were closing left and right due to Amazon there are the ones who closed and the ones who adapted and turned into cafes or co-working spaces, started holding meetups and were otherwise able to grow. It's the same with this industry.
Service and maintenance has become a bigger opportunity, some stores are selling online and have a better opportunity than most individuals to do so profitably, and some are just providing good clean stores combined with knowledge and good husbandry which allows them to keep clients long term -- this is still a differentiation that liveaquaria can't compete with and they are probably happy for BRS allowing more people to get in the hobby and stay long term giving them more clientele.
If a store has hair algae all over its display tank and they blame "online retailers" for their business failing, I don't have pity for them. Most people on this forum will pay extra money to a LFS that is clean and follows good husbandry habits. LFSs have an opportunity to provide better service than online retailers through things like knowledge, quarantined fish, and service.