Don't forget the mom and pop convenience stores that had those tall rotating wire racks near the register that always had a few kits, comics, and cheap plastic Japanese (not Chinese) toys.
Kmart, Woolsworth, TG&Y, Skaggs (now Albertsons) and Gibsons (a regional Kmart-like store) would all have at least both sides of an isle full of models and supplies. I always wondered what it would be like to buy a can of Testors or Pactra spray paint! They generally cost more than a kit. Kids could actually but spray paint and model glue in those days without providing an ID
We had a local hobby shop that was on the other side of town from where we lived. About 3-4 times a year my mom would shop a sale at the Piggly Wiggly in the same strip mall as the hobby shop. 25-30 minutes was never enough time to see all the models and other cool stuff the hobby shop carried. There would be heck to pay if I wasn't at the car ready to leave when the grocery shopping was done.
That hobby shop is actually still there! About 1/4 of it is RC cars and planes. The other 3/4 looks like stock still there from when I was a kid. Unfortunately none of it is model related. Mostly old, faded, yellowed, dusty, dried up arts/craft type stuff. I'm assuming the owners are holding on to it for nostalgic reasons as I don't see anyone in their right mind buying what is basicly junk. Of course there is that old "trash-treasure" thing! Their main business now appears to be RC related.