We have 7 LQS in our immediate area. A new one was just added last year and may just be a nice tax right off for a Dr. of a high-end specialty in the area. The wife was told to "do something," so she opened a quilt shop. Really I'm not sure if this immediate area can support so many shops, but so far, no closings. I haven't even had a chance yet to make it to this new one, so really it may be a really nice shop.
I agree with the showroom comments. I'm not sure how any brick and mortar shops like quilt shops or yarn shops are making it today. Books - unless they are a variety that don't get discounted - are basically useless today, I've seen people look at them and use their phones to order them up from Amazon.
We actually have a plethora of shops in a 2 hour drive, so it does keep the prices competitive - still around the $10 - $10.50, even batiks. I would be happier if it was more around $7 - $8 mark, but those days are probably gone when gas and shipping got so high.