The quality control of the product is good enough for local stores to deal in this product. It could be done by smaller local shops when a knowledgeable owner could check every light and fix any with problems but then the price would go up.
They would have to offer a warranty and then the costs would go up even more. Some local savvy customers would look online to see what they cost and would complain about the markup.
So we have the current situation where the technology is old but the warranty is good.
I ask myself the same thing but I believe the answer is, large chain stores carry products because of contractual agreements to a manufacturer, which usually happens to be Duracell, MagLite and whoever makes those little crappy 9 LED lights. The people that work on the business end of these chain stores don't see the value of selling a light that costs upwards of 100 dollars, has the latest Cree XM-L LED, runs on "funny batteries" and most likely won't sell because the customers also think that an old incandescent MagLite is more than enough for anyone.
Target does sell Inova lights but...I don't like them. The Mag XL series can be found and that's a start to getting the general public started on good lights. Also, tool trucks carry a huge selection of Streamlights but Streamlight has the same problems to be, cool white emitters, PWM current control and old technology (Cree XR-E).
They are gradually getting there. Someone posted today about a C8 with 18650 and charger being available now in a Canadian auto parts store in his area for $20.
The latest thing is always going to show up first in the cheaper Chinese knock-offs however. Larger, more mainstream companies can’t react as quickly since they have older inventory to use up and have more rules to follow for introducing changes to their products.
When the rapid changes going on in LEDs now slows down a bit the larger companies will catch up.
Remember before flashlights were mainly LED change was very slow and all lights were more or less the same.
Tend to think that the margin on those lesser lights is way more than what we buy direct from overseas. Brick and morter stores need that margin to justify inventory selection. I look at the pricing of those dinosaurs and shake my head thinking "you know what kind of light I can get for $10!"
Also, imagine the huge inventory glut of 2xC cell and 12V flashlights out there. Enough for three generations of people.
Then there's the replacement bulb sale and battery sales...
Liability laws in the US will prevent stores from selling direct drive 18650 lights because some butter head will leave it on high until it blows up and sue the hell out of whoever sold it to them.
