I've had great experience with my local stereo stores in Souther California. All are knowledgeable folks that are clearly in the business for the passion of it and are trying to make it work.
I really try to buy local when I can. One thing that keeps me from doing so more often than I'd like to is 1) limited return policies vs online (if I want to audition a $3k preamp it's not helpful to do without hearing in my system). 2) The used market is so robust and accessible, especially when you factor in a 10% sales tax.
The second can't be fixed, but I really encourage the retailers to work out some policy where folks can more easily try stuff out at home. All the customers are aware of how easy that is to do with the online merchants.