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As far as possible, I will support companies in the UK such as Accurate Armour, that are committed as much to the model builder as they are to themselves (and obviously making money).
  I think that's what it boils down to. A hobby/toyshop in a neighbouring town used to have a good selection of 1:35, with some odd things like CMK and Dragon and occasionaly AFV. Now just a few Tamiya and Revell kits. Still plenty of braille scale, planes and 1:24 cars etc.  I asked why the 1:35 armour had been scaled down and was told that " we only get one or two of the likes of you ( no offence meant) who buy that stuff, but we get a lot of people buying the small kits like planes or cars. Most are people who buy for their kids, or other 'beginners' who won't spend £ 20 upwards on a kit that they can't finish... They will buy small kits that cost £ 2.99. Most shops I have been do advise you to buy your kits on the net, as they can't carry such stock.
As for my LHS, he really is going to lose me as a customer, as I'm getting a bit $$$$$ off with his lack of stock. He sells Tamiya paint. That's it, no enamels or anything else. He doesn't even sell brushes. Well he does, but I wouldn't even use those for glue application.
Cheers
Henk