In my area, we are fortunate to have some excellent LBS, and a few average to decent ones. Over the years, I have used 6 different shops for both new purchases, service on older bikes, repairs and service (both major and minor), emergencies, and accessories. Maybe I am just lucky in that I haven't had any really bad LBS experiences in 13 + years of cycling in Wisconsin.

There is a local bike shop chain that tries to be all things to all people. In theory, this should be the place for the novice without a good idea of what he or she needs, as this place carries all kinds of bikes, from commuters, to cruisers, to mountain bikes to road bikes. But in practice this place many people either overpay (a problem) or wind up with a bike that doesn't suit them and either winds up sitting unused in a garage or basement or sold on CL. I think this is because LBS come down to people rather than brands or inventory. Your experience with a large chain, either sales or service, may be excellent or poor depending on who you get.

It pays to look around and know who does what. I sort of have a heirarchy in my mind. Outside of emergency repairs or the occasional stop to use the bathroom or refill my water bottles, I never use that local chain place.