How to make money as an LHS owner

[nachoman]

On another forum, threads appear about every other week with the subject of "My LHS is closing" or "This hobby is dying". Frankly, it gets old. The thread always develops a negative tone, and I decide to quit reading them. The points that are brought up are usually the same:

1) Usually the store is closing because the owner wants to retire.
2) The store has been there for ages.
3) Usually at least one person will chime in about how the store was terrible anyway, so good riddance. It is usually prices or poor return policy that fuels the complaint.
4) And then the conclusion is the same - the hobby is dying, LHS can't compete, and we should all panic.

I don't want to re-kindle that despair here. But it does make me think about what the LHS can do to make a profitable business. If you were to open an LHS what would you do to make things work? If I was to open an LHS today, I would:

1) Cater to multiple hobbies, and make sure there is an employee that knows about them. I don't think a hobby store can survive just catering to one hobby anymore.
2) Make the store inviting. Most of the hobby stores I have been to are disorganized, crowded, confusing, and generally uninviting for most people. Clearly separate the various departments, make sure the lighting is good, and have displays to catch the eye. This philosophy works for super markets - why won't it work for LHS?
3) Have a display layout that customers can operate, and do similar for other hobbies. Perhaps you can draw in customers who just want to come in to check out the display, and they decide to buy something. Or perhaps they come in to buy something for their RC car, and their kid becomes captivated by the HO layout. Take the Cabella's approach - make it appealing to simply browse and have fun!
4) Friendly staff. I quit going to one store because the owner was a bit of a jerk. I don't care how much you know, If you are a jerk to me and act like you don't want my business, I won't be back.
5) Make sure the basic items are in stock!!! there is nothing more frustrating than going over to the paint rack, and seeing half the paint colors sold out - including the most popular colors. I can't emphasize this point enough. Sometimes I need one more bag of green ground foam, and I drive across town thinking it should always be in stock only to find out they are sold out, and have been sold out for MONTHS.
6) Location. Is it me, or are most LHS extremely out of the way or hard to find? I am not saying they need to be on the prime corner in town, but at least put them near a residential area and in a location where some proper signs or window displays could bring in foot traffic.
7) Internet. I don't think a store needs to emphasize internet sales - but a lot of customers like to check out a store's website before visiting, or even calling. The website need to be easy to navigate, clearly list what is normally in stock and what services they have, and list a few items that are on special.

Personally, I don't think the LHS is a dead business. If done correctly, I truly think it could be a money-maker - provided the owner is willing to adapt and put forth the effort. What do you think?