Local Advertising
I know some shops look at advertising and for some reason or another tune out. I will tell you for certain this is key. Every single shop that has closed this or the above two points.
Local advertising is meant to keep your locals coming back. This involves engaging your locals to keep coming back (and bringing friends) with events, Facebook posts, and other local advertising. Post on Facebook new stuff in the shop, finished customer quilts, finished class projects, new classes, and anything else to bring them back in. For finished customer quilts, tag the person by name so it appears in their feed. They will share it with all their friends, which grows your following and thus your business.
Make arrangements with other local stores and restaurants to advertise each other on the door or the cash register. Have each talk about the other.
Advertise in local papers, business fliers, events, and event websites. Talk to your chamber to find groups in your area designed to help you grow and plug in.