I think "bites the dust" is a little harsh. When you read thru their entire announcement, it makes sense for them, and they are still fully in business.
Just like they made the move from hardware store to Model Train store in the late 70's when the majority of walk ins stopped coming for hardware, and were coming for trains.
As the web sales worldwide for them is far outpacing walk in customers, they made the wise decision to once again, move to how the vast majority of their customers shop.
By converting the walk-in store to more warehouse space, and devoting more resources to their online business model, it makes sense and is a smart move.
Is it fun to walk into a train store? Of course it is. I miss it on occasion. However, whereas in the past even casual lookers would walk into a hobby shop while out and about, keeping the shops full of potential customers, these days it's just us. It's not just because of online sales. Hobbies and what people model shift over time.