BPS has always done well with their catalog sales, that has been a huge portion of their business since the beginning. So I don't think they have been hit that hard from online sales, it's more likely that it has actually helped their business.
The problem with the the Fishing department in Springfield has been it's move to their brand. In the beginning you saw one or two items that were BPS branded products. Now that's about all you see, that's what's always on sell and I think it's really starting to hurt them. The knowledge of their staff has gone down, they still have some good ones, but when you walk into the fly shop and there is a female college student working in there claiming she knows nothing about fishing then you might want to consider how much that is really saving you. They are more interested in having the tourist pour through there and pick up a few branded items than actually being able to understand that they could have both. The fly shop has shrunk over the years. It used to be full of stuff, now they usually don't have what you are looking for. But hey, all the stuff is available form the catalog and you can have it shipped to your house for a small fee, even though you live less than 5 miles away.
I don't think anyone faults any business for going after whatever money they can make in this economy, but this change started long before the economy got bad. It's just sad to see that "one of America’s premier outdoor retailers" can't be just that right here in their home town.