Keeping a quilt shop running is a daunting job. People don't just want you to have goods to sell, you have to educate and entertain them as well (classes, clubs, newsletters, websites, etc). But they want the prices that they can find on the internet. When I used to sell fabric, books, notions, etc., I would actually have people come in and ask me to help them with their quilt, but they had purchased the items elsewhere. Huh????? There is a reason the shops have to charge more, you are getting more for your money!
I have a friend that has a gift/home decorating shop. Yes, she has to have a good selection of goods, and she does put time into displaying those nicely. HOWEVER, she does NOT send out a newsletter, she does NOT have to create samples, she does NOT have to cut kits and fat quarters, she does NOT teach classes or put on demos. She can hire high school students to run the cash register - they do not have to have knowledge of how to combine fabrics, interpret a pattern, figure yardage and all the other things you would want in a good quilt store clerk.
Often times shops will close due to owner burnout. And I do think the economy and online shopping are affecting local shops as well. Sad.
Andi