[analog31]

>>>> Most people have a bike, but would never bother taking it somewhere fancy like this to get it fixed or serviced. They paid $100 for it at Walmart.

That's probably true to a certain extent, but so called "department store bikes" have been a constant baseline of the bike industry for decades. So I think that the ups and downs of bike shops are largely independent of that baseline.

People still do buy slightly nicer bikes, and are still willing to get them serviced. At the very least, they buy those consumables. Most people need help figuring out which part will fit on their bike, and how to install it.