We still have a locally-owned and run music store in the NOLA area. It is really in Kenner, a suburb of NOLA. C and M Music Store.
He has stayed in business by adapting to the new market. He has as many guitars hanging from the walls and ceiling as GC. Even has a custom line somebody is making out of car parts!!
Has a full service repair shop that includes a Plek machine.
And he will match or beat any price you find on line.
And if the owner (forget his name) is in there you can strike up a conversation with him and he will gladly show you pics of his guitar collection.
They have 4 locations over the southern Louisiana and Mississippi area.
Last time I was in there I was wondering about how those acoustic amps sound. He has about four or five different types from Fishman to Fender and Ibanez. When I asked about them he started giving me all the ins and outs about them but recommend the Fishman hands down. He said the quality was just so much better.
Then found myself a few days later in a restaurant with a guy playing acoustic slide blues. It sounded great and the amp he was using? Yep, Fishman!! When I go to buy one, I will get it from C & M.
There's still some local shops around. But to stay viable and profitable, they will have to adapt.