Crafts are very cyclical. Knitting has come and gone and come again. Our city now has three large knitting stores with one being incredibly high end. Three new fabric stores have opened in the last year. One modern fabric for quilting, one standard quilting and one high end sewing fabric. We have lost several "rural" quilt stores but it appears to have been location and the cost of gas. Our local shops are working hard at offering lots of incentives to get shoppers in the door. They are packed full at Saturday events and at their sales.
My favorite cross stitch shop closed due to rent increases and the pressure of family obligations. She had a prime spot across from the high end mall and was paying $3500 a month just for rent. It is not always about sales decreasing. It is a hard job being a business owner and can sometimes suck all the enthusiasm for the craft from the person.