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I dunno, the volume of 'cycling is the new golf' type press stories in the past couple of years suggests there's a market. They just need to pitch it right.
Vanneau-
I think their biggest problem will be finding staff who can make it work.
On the assumption that they do have to make money, and they, like most shops, will make the good chunk of that from accessory and repair / servicing work, they have to get some pretty savvy and approachable staff in to off-set the image of it being a shop for roadie douches only.
Howard
I can't really see a high-end brick and mortar bike shop being economically viable. Even in the moneyed west end, how many people are really going to be interested in purchasing a £5-10k road bike? It certainly doesn't have the same cachet that an expensive suit/handbag or similarly extravagant car does.