Just my experience..... I live in Cleveland ,Ohio. For at least the last 5 years...We have 1 Audio store, and that is run out of the guys house. He carries very expensive extremely niche brands. Cleveland has a population of 375,00 and regionally its well over 1 million people. We used to have at least a dozen brick and mortar stores, and now 1 out of some guys house.
My point is, at least in my neck of the woods...there is no demand for high end audio, or mid/fi gear. I believe it is a generational problem. I think as us dinosaurs get old and go deaf...there is no one behind us to pick up the slack.
Also all the young people grow up with music on their phones/state of the art ear buds/and blue tooth speakers that blow away what we had, and its so much easier and convenient.
I don't see this changing for the better. High end audio will always be around , but at a much smaller scale. Which will certainly eliminate Audio manufacturers and Audio stores.