I've seen local scrapbook stores bite the dust and usually the owners haven't been friendly, they were poorly run, never had new merchandise. Just not great store.
I've seen many local scrapbook stores thrive because they are doing everything right. I know of scrapbook stores around the country which are doing great. The one near me in the Villages - they just moved to a bigger store with better parking last year. They bring in guest artists like Tim Holtz and Theresa Collins. Great crops which are reasonably prices - 4 retreats a year. The owners are wonderful and everyone loves them. Always plenty of new things.
There are a lot of awesome scrapbook store out there but they really ahve to be good to compete with the box store.