My LQS seldom has more than 2 other people shopping in it whenever I have stopped in. They have to pay their 2 worker's whether they only have a couple of shoppers or a store full...they could drop their prices and could more than make up for it by sales volume.
Their yardage averages $9 up and one does have a wall of $5 fabric, but most has been sitting there for the last 6 months....truly what no one wants...