Had the same thing happen here, with added effect that I lost my job. (worked there)
Your feelings hit home with me. Since the stores ARE Franchises, they have to stand on their own. Our location had a GOOD variety of tools and the other things needed to support woodworkers.
Our problem was that some customers would only come in for sales and also came in to look around, but bought off the internet to save the sales taxes.
For the last two years, our owner poured money into the business, to keep the doors open. Finally, he decided to cut his losses. There were two stores in town. The other is more into flooring, so the inventory mix is different; meaning that we have to spend more on the internet, to be able to get what we needed.
My belief is that we Have to Support our local businesses, or it will be like frontier days, where you sent away for everything and got No local support.
One of the last things that happened really had my head spining. Our shop work rate was $35.00 per hour. (Planning, sanding,custom work, etc. for small jobs, we do them free, for our customers) I got a call from a guy that wanted 200 8' oak boards planed and sized. I told him our rate and he went ballistic. I asked him if he had bought the wood from us and he said no, our price was a nickel high per bd/ft. I broke a cardinal rule of mine. "Is the bad press he will spread around worth it. Usually the answer is NO!
But since I already knew we were closing in two weeks, I said to my self - Heck Yes - and said, take it back to where you bought it, to which he replyed. "They don't offer that service."
Sorry for your loss.
Bruce