With today's economy, gas prices going up again, food prices going up, etc. one needs to determine just how much they want/need to spend on things like fabric, notions etc.
My local quilt shops are a gal of gas to get there and to get back home for my vehicle! Now add that cost to the price of fabric and you are paying a whole lot more than if you shop online and have it shipped. It's not always the online shops that are killing the small business but the overall economy.
People have to make tough choices at times, food or fabric for example!
It's up to the owner of the Local Quilt shop to stay in business and find ways to bring in customers to shop.