Our LQS is much pricier than yours! Most fabrics are $12/yard. I already have more yards of fabric in my stash than I am likely to use up in my lifetime, so I find it difficult to buy yardage at that price. I love buying individual patterns, but I find they price these at the very top of the market also. Often I can find the same patterns online for considerably less.
Our LQS is thriving, though. They offer many classes, trips, etc. and they are actively involved with the local guild for planning retreats and special events. My problem is I don't really need any more classes, and I'm not interested in trips or retreats.
I hardly ever even visit the LQS anymore. However, I also don't shop online much anymore!