As Martin Stated above, we have seen the figures from surveys of HB shops. As a whole, sales are not down. There is not double digit growth from year to year right now, it is single digit. More shops have opened, so did a new one open in your area? That would take some sales away too.
One other thing that has come out is that all grain brewing is on the upswing. This is probably due to the cheap and easy technique of brew in a bag becoming popular. If your local guy depends on extract sales, that may be another reason.
Homebre wing is always very popular and grows in a poor economy. As things have recovered, maybe that explains the slowing to single digit growth. There are also breweries opening like crazy. If you can get good beer at the brewery just down the street, why Homebrew? As homebrewers go pro, most stop brewing at home, and there is another way the numbers go down.
I would say going down 60% in one year makes that place an outlier. One would hope it is not the canary in the Coal Mine.
Edit - Gary Glass gave some figures on this in his Zymurgy column, I think 2 issues ago.