I checked with my 3 main LBS "stops" in the last few days.

They are hopeful. Wal-Mart and big box stores are having to pay closer to their prices for the bikes. The LBS's feel more competitive. My main LBS had a 7-sp "cruiser" for $269, and it's selling, especially to ladies. He's also got some of his kids bikes at $139/$149, and being that close to Wal-Mart's $79, he can pitch the quality successfully.

It's nice to know that the gap is narrowing, somewhat. He buys with a group of LBS's, and they are pooling their purchase power to get some discounts on good bikes. He feels he can turn the corner this year and become the "first stop" for more buyers.

Anyone else seeing this?