I'm so glad to live in an area with 3 separate LHBS' accessible to me during my work week. The main one I use also has an awesome line up of beers from their Brewery side of the business, and even that is split into 2 distinct brands(1 average strength and the second is called Triple Digit Brewing for higher(much) strength brews. Their brewery has expanded several times since I began home brewing 2 years ago, and they are remodeling the store for better bathrooms, and I think expanded tap room area.
The next one is also now operating as a brewery, but I recently found out that they are contracting out their brewing(they started with a 3 keggle set up to fill the tap room) and now have to have someone else do their brewing to keep up with demand. I hardly ever shop at the third location, but its close when in a pich, just not around any of my work driving really.
All 3 shops have great, enthusiastic employees who are also home brewers. I don't think Ive really ever been lead too far astray at any of the three. In my limited viewpoint, the business is booming in greater Cincinnati, as was seen last Friday morning at 10am: Main shop I frequent had about 15 cars in the lot, with 5-6 people shopping for ingredients and 2-3 people in the taproom, plus employees: I had to wait in line to check out at the shop side. Granted it was Friday on a holiday weekend, but seemed like no shortage of business to me.
As an aside, I love to frequent my LHBS', but in OP situation, I might have to look elsewhere. Unless we are friends outside of the shop, I did not come in to hear how your business is declining. Not to sound unsympathetic, but that's not why I came in. Don't try to pressure me with sob stories, or scary rumors about the future of the industry/your shop. Handle your business properly, and the business will/should take care of you.