Perhaps in some spots. But most small hometown bike shops are competing with people doing the same thing out of their garage using YouTube videos. You can't keep the lights on rent and insurance paid competing with a guy who says "Those guys at 'Home-Time Bike Shop' are rip-off artists. I can do it for half that."
That's great where it can work. It can especially work when a shop is more an extension of a hobbyist owner with big pockets, is a non-profit operation, or where the demographics are aligned.
But "community" often doesn't lead to revenue and profit. Especially in the age of the internet. Long-time, loyal customers often stop in the shop to excitedly tell the shop owner what a great internet deal they got on their bike and need some oil and advice.
The shop does free support for several tri's and discounted repair service for local schools but this doesn't translate into sales like it did before the internet.
