Very interesting little market review. thanks for posting!
It seems logical to me that if Walmart and Joanns offer improved selection of the $9.99-$12.99 'designer' fabrics and batiks, then it will certainly impact the LQS, which has been suffering along with the big-box stores during the recession.
I am surprised to here from these posts that LQS haven't all got the service thing perfected, just from pride of ownership if nothing else.
It would seem the LQS needs to differentiate itself to the customer by really fabulous service - cut those fat quarters! special order some fabric I need! offer affordable classes! send emails with offers! let me shop the stock on-line! anticipate the trends and bring them to me before the on-line retailers do! Possibly the LQS will need multiple revenue streams, like machine sales and/or repair or internet sales. But the LQS will never be the be-all and end-all, and I'm certainly not going to buy a yard of fabric which isn't quite what I want, or pay 20% more for batting, or pick through a lousy thread selection, just to boost my LQS bottom line. Hey there, what about MY bottom line?