The $5.00/yard will be quickly be going the same way the #3.00/yard did, as most all of the new fabrics are coming in at $5.50-$6.00/yard and when you add freight of .35-.50/yard depending on where they are shipped from, this means the cost of fabric for the LQS is going to run $5.85-$6.50 per yard. No one likes to lose money so many places will mark at cost just to get some of their money back.
I own a quilt shop and I just closed my large store and built a 1200 sq.ft. warehouse style building. Nothing like what I had, but I am in the midst of re-aligning my pricing structure and will have nothing on 45" bolts over $8.50/yard. It has been a hard thing to do but I recognized that I am not getting any younger, just turned 65, and I just couldn't keep up the 12-14 hour days and 6 days a week.
I had such an outcry from my customers that I decided to be open 3 days a week for them. If they don't support the shop now, I will re-evaluate in a year and it will close and become my studio and I will do some designing and quilting.