I know of one model in our local area that has been working for some time now. They are a brick and mortar store with large internet sales as well. They choose the products and wholesalers they carry and deal with carefully based on margin. They have 1 very popular product that they carry and offer it at a price that is cheaper than anyone else. In this case Do-It molds. This creates a lot of internet business for that product as well as the other materials associated with it. They have a lot of walk in business for live and frozen bait, they do not sell live bait fish, just worms, and frozen bait, people browse, and purchase other items as well.
The average customer does not buy 200 dollar reel, 300 dollar rods and 40 dollar lures, they shop cheap, hooks, weights, line, plastic baits, cheaper rod and reels well under a 100 dollars. They cater to this crowd so they rarely miss a sell. They have a friendly, knowledgeable staff that take time to help customers with selection, knots, rigging, whatever the customers needs.
They have been successful with this model where others have failed, they compete daily with Gander Mountain, Dicks, Cabelas, and a couple of Academy Sports. They continue to fine tune the products they carry based on their customer base, and have enjoyed increased sales over the last 5 years.
You can make it work, if you put your customers needs and wants ahead of your own vision of what your store should look like.