I will continue to go to my LQS even when the new el cheapo fabric shop comes to this town (which is soon), because if I go to him with a strange request that he hasn't got in stock he does the research and rings me up to let me know that he has acquired it. I think that is a good businessman. He also does not overcharge on repairs or try to push product - he is very honest in his assessment of pros and cons.Those qualities are what I look for in a shop, not that it is 'trendy'and has all of the 'right' material for the shopping snobs.
Good luck with your enterprise.