Music shops have been in decline for years, at one time almost every town had one but not any more. The guitar industry is being eroded from all sides. From being an unfashionable instrument to competition from cheaper manufacturers, to technological advancements in digital amplification making traditional amps largely redundant.
But on the other hand the technical abilities of modern guitar players arguably outstrips any of the old guard heroes of the 50's through 70's; there are a million Youtube shredders who make Eddie Van Halen look like a pub noodler (albeit with perhaps less mainstream popularity) with more free learning resources than ever before. You can buy great guitars for not a lot of money and they don't have to come from one of the big names, and if you buy a Kemper or AxeFX you have access to virtually every amplifier and stomp box ever made in the space of a 2U rack slot.
The traditional guitar industry might be feeling the pinch but there has never been a better time to be a guitarist.