A few years ago I was pretty sorted for a LBS. First I worked in it and they stocked good stuff and could get stuff. Then I quit and but would still go there when i needed stuff. Then it closed down, but a new one opened up in my town. Then it moved to the next town, but still within riding distance. So I'd use that and in both cases the shops were run by riders and stocked good stuff or could get good stuff. After a few years that one closed down too.

These days my localist shop is ten miles away and I don't have time to go over there what with being away most weekends, and working in the week. So my favoured place for bits I need swiftly is Chain Reaction. They do a good service and have good prices. I would like it if I had a bike shop I could go an hang out at, check out new stuff, and when I need something a bit special doing like pressing in a headset or something, Ive got someone to turn to who I know I can trust. I miss that these days.

Someone commented on the fact that a shop wanted to charge

lets get a couple things straight here, chain reaction can get things to your doorstep the next day because it had a warehouse the size of a small village, this way they keep MOST things in stock so they can send it asap.
a bike shop is usually the size of your little toe (give or take) so has to order things in. if these parts aren't in stock with the distributors then theres not a great deal they can do about it.
we once had a guy try a bike (he even used the damned water bottle) only to buy the same off ebay and then come to us for warranty when the frame cracked.
we told him very politely that he should return it to where he got it from..........whoops.
loyalty is a big issue with bike shops like ours, come to us and we'll near as damnit match a price or fit for very little. we even stayed open for an extra hour the other day for a customer we know and like.
you scratch our ass and we'll scratch yours, though usually we'll bend over backwards in our part of the deal

Im affraid thats bussiness! They are providing a service which may be just as good but for a cheaper price and more selection

Maybe with HMV yes, but your local butcher will give plenty of helpful advice on how to cook the meat to get the best out of it (same with fishmongers or the like), but people don't give a s**t, they buy the crappy bundled packaged sealed lumps of dead animal and bake the hell out of it to serve with their aunt bessies frozen roast spuds.

I know i'm off point but it's the same all over now, people don't care where their stuff comes from in general nowadays as long as it's quick and cheap.
Where I live isn't a big town and i'm not going to spend a morning at the weekend driving back and forwards to the nearest other shops within 30 miles only to find they haven't got what I want when I could have ordered it Thursday, fitted it Friday and been out on the thing instead.

I use both crc and my local bike shop. I only use crc if i need the parts asap though. As if i buy a part from my lbs they fill fit it for free and if i don't have the cash for a part there and then i can have the part and pay them back whenever i have money which is really handy for me.