They did indeed, and the Radio Shack in my town was one the last ones I ever saw to still sell individual components although the selection did shrink rapidly in the final years. The other locations around and about seemingly all turned into basically exclusively cell phone stores, right around the time the cell phone boom was happening. The problem with that: So was every other retailer on Earth, but most of those other retailers also had other product lines to fall back on. The inevitable tanking happened shortly thereafter.
There are somehow apparently still around 500 Radio Shack stores still operating, I believe all of which are privately owned. I have seen a couple in my travels, all of them located far out into the sticks in Appalachia and the Midwest, presumably all locations that are not served well by larger competitors or the internet.