To be specific, Amazon killed small goods shops in city centers.
The only businesses still open are services (food/restaurants, health, etc). Because those need you to actually bring your own body near the bodies of others.
And of course let's not forget COVID, which was a major factor in destroying small business of any kind.
And the ones left aren’t paying taxes, or wages.
It's also a vicious circle : Because there is less and less physical shop selling specific goods, you have to turn to the internet, which mean local businesses get less traffic and die off. If you have any slightly niche hobby and do not live in a major metropolis, you are SoL. As an example, I would have to go 200km away to buy raw leather and leatherwork tools despite living in one of the biggest city in my country.
Possible solutions to this include 1. More stores introduce a paid membership. This is not a bad idea, a store pays for the cost of the physical location with the membership fee and has similar prices to online stores, and they have an incentive to maintain product quality, Costco is very successful with this model, but I'd be worried that that the model is begging for enshitiffication, you could really cash out on the store's reputation by lowering the product quality and increasing the costs and relying on the friction of the existing membership to keep customers for a fair while. 2. Stores focus on being an enjoyable experience, and hope that if you're spending enough time there, you're going to want to buy something. This is what Barnes and Nobles is doing, and most surviving malls. 3. Some sort of policy fix. I'd be in favor of an online shopping "tariff" designed to bring online prices in line with what it costs to run physical locations, collected by the feds and redistributed to localities. Has the minor downside that everyone but me would hate it, and it would be so monstrously unpopular that it could never happen. If we could figure out a way around that, though, it could be quite good.
There are still goods that are primarily bought in person, hazardous and large where shipping is prohibitive.
You expect retail outlets for that? 30 years ago when I was making my own shoes in London and wanted to buy hide I had to trail around grimy industrial areas to visit a wholesale warehouse and persuade them to do retail for a moment.
Industrial businesses were less rigid about avoiding retail sales than today but it was still way more hassle and generally "the dark ages" comparatively.
Periodically I watch YouTube videos made by a historian of clothing. She makes a lot of clothing for research and display, and she had an episode on where to purchase linen and what to look for to make sure you don't get a sub-par product. When I was growing up you just wouldn't have been able do something like that unless you were living somewhere like Paris or Milan.
Local business owners are taxed to death.
Meanwhile, multinationals with HQs in tax havens roll in and set up national branches. The local branches pay their HQs for imaginary "services" and "rights", allowing them to operate practically tax-free in the country.