It probably depends on the size of the store, rent & all other overhead.
I know that I used to cringe at the prices at the LQS really close to me and off I would head to the larger, lower price store. Know what happened? One day I got an email that they were closing and I feel bad whenever I drive by where it was to think that maybe if I had just shopped alittle more often there it would still be open. They did have fabric that was so much nicer!
Hindsight is 20/20....