This might just be the end of brick and mortar

I'm pretty much in agreement with Mitch2 (did you mean tailwind, toward demise, or headwind, to buffet their advance?)
We have short memories, I think. Even in the heyday of the 'stereo store' (before we needed to distinguish so-called 'Brick & Mortar' from its virtual counterpart), there were a lot of shortcomings with the conventional dealer 'model'- dealers could not conceivably carry every line, couldn't account for synergies among brands they didn't sell (not sure they did it effectively even among the brands they did), and wanted you to buy what they were selling, not what you thought you wanted. Forget the attitude issues, the lack of support, and the limited knowledge- most dealers could not deliver what they promised, and that's why the premium charged wasn't worth it to a considerable number of customers. Today's high end dealer doesn't need a retail store front, operates by appointment, makes house calls, provides support, loaners and takes good care of long term customers. That costs money and there are probably only a small handful of dealers in the States that are able to do that. The rest- well, remember when 2 channel stereo basically crashed as a consumer product, and most dealers turned to home theatre as a revenue stream? And now that you can buy most of that online unless you are looking for a large 'install,' they are back to where they were- yes, probably a small handful have enjoyed the 'bump' from renewed interest in analog, but I gotta believe that the business has been suffering at the middle price point for decades. (No animus against dealers, btw, just an observation, based on a fair amount of experience).

So how is it that companies like Audio Research, Wilson, Magico and the hundreds of other high-end manufacturers are able to push their product. Who are the first buyers of this class of gear? What are the supply and distribution chains?

I agree that B&M stores are falling by the weigh-side (sp?), so how are these companies getting their product to market ... and ultimately into the hands of retail customers.

Bifwynne, high-end USA audio manufacturers, like the companies you listed, have USA based dealer networks with locations typically in major metropolitan areas. Many of them also do a thriving overseas business.

Bifwynne...Audio Shows open to the public is having a huge impact on the market. Yes, there is a lot of equipment sold at the shows, but more than that it allows audiophiles to hear/experience many different options and go home and order the equipment or find it on a site like AudioGon. The Audio Shows, like the one I recently attended in Denver, brought in people from all over the country. I believe there will always be a place for high-end audio shops, but there may be fewer of them as time goes by. There are lots of Home Theater installation companies doing well without store fronts. High-end two channel only stores are almost a thing of the past. The high-end world is changing and not necessarily for the worst in my opinion.

"11-16-14: Bifwynne
So how is it that companies like Audio Research, Wilson, Magico and the hundreds of other high-end manufacturers are able to push their product. Who are the first buyers of this class of gear? What are the supply and distribution chains?

I agree that B&M stores are falling by the weigh-side (sp?), so how are these companies getting their product to market ... and ultimately into the hands of retail customers."

They control their dealer network. If a dealer wants to sell the brands you list, they sign a contract that lays out everything they can and can't do. Most, if not all, of the companies similar to the ones you list, will not let anything other than a B&M store sell their product.