Not sure what I can add that hasn't alrady been said, but I will mention my lhs and my thoughts.
This appears to be a regional(continental)/continent problem.
I have one LHS here and the selection is poor. Lots more Ships, planes and military as was previously mentioned in other posts.
Aftermarket items are close to nil and if there are any it mainly applies to low riders, of which they sell no low rider models.
I see a few Hasagawa kits, and one or two other japanese manufactures sprinkled through.
Supplies are relegated to only Testors.
Just recently I was able to acquire some Tamiya Paint and was just blown away by the ease of use. However, my LHS will not carry it.
I get disgusted with them, however I still go to buy waht ever I can.
I too know my LHS owner on a first name basis. In fact I worked for him a few Christmas' for free! Well, he'd let me take a model home at the end of the day. Worked out great for him and I.
I talked with him just yesterday and he told me he was hoping on a great Christmas, things are certainly tight there. I'd hate to see him close up as they have been in buisness over 30 years.
The likes of Wal-Mart, Hobby Lobby and Michael's get my main model money. You can't beat Hobby Lobby's 50% off sales. That definitely hurts the LHS.
I am happy to say we have a local car model club, they do not allow any military modeling. They promote the hobby the best they can. They have two shows a year and donate make and takes to kids.
No matter how you slice it, modeling will be here, just that we are in a dip now.
Chris