I think battlefront won themselves a ton of new customers with the V3 changeover. Adopting a mentality that says publicly 'we want you to only buy one rules set and then we'll update it at our cost for free' has won them plenty of supporters in my area, and ensured plenty of sales for the new book. Its a genius marketing technique, with new people getting into the game, plenty of people feeling warm and fuzzy and plans aplenty to buy the new hardback book. A small outlay has almost certainly more than paid for itself in profits.
In terms of wider competition and FLGS - I've been to a couple of UK based FLGs and my observation would be firstly that each time I go in, the GW racking space feels a bit smaller, and the wider companies feel a bit bigger. Similarly, there is always a new different game to try. I think GWs problem isn't that there is one new mega company out there, its that there are plenty of companies (often with ex GW staff) out there who know what sells, what people want to see, and who seem to get customer service and communication in a different way. They are marketing at the post initial euphoria of OMG SPEEZH MARHIIINEES people (e.g. later teens early twenties) and it seems to work - people with high disposable incomes are going there, and not GW. My local club of roughly 30 people has probably halved its GW focus in the last 18 months, and the money gone to new games like Maulifax, Hordes and FOW instead.