There is some truth to that, but the shops that primarily sell the entry level Giants are competing with Wal-Mart and the Wal-Mart mindset that bike shops are just ripping people off.
Even selling a selection of used, bike-store grade bikes, fully inspected and tuned is viewed as too expensive because of what a person can find in a dumpster, on the side of the road, from a neighbor or on Craigslist.