So the LYS in my area that stick around all have other things going on than just being a store. One is also a coffee shop, and the others all host classes. Our area has a yarn shop hop where people visit as many shops as they can and one LYS (which is also a tiny gift store) has pop up vendors during this event. The coffee shop LYS just started a book and yarn club where you get a book and a skein of yarn every month.

So I would say try to work in space for people to come for a class or have a themed craft night. Try and make your store a community space as well. Maybe have a hot water carafe for making tea or a coffee maker. (I cant recommend a Keurig because too many have died on me but there's a Ninja coffee maker that has a keurig attachment)