Yes - fuel and energy cost increases ripple down to retailers.
While the wholesale cost of a fish might be about the same as it was in 2007 (and it is), the cost of shipping it to you has increased quite a bit (because of fuel prices).
Ever wonder what it costs to keep the lights on in a big LFS? One that has all sorts of special lights for inverts? It's no joke.
Finally, fish are a hobby. It's 100% discretionary income. Fewer people able to afford the hobby means fewer customers for LFS. They've gotta make up the difference somewhere. Most have gone out of business.
The solution: Get involved in your local fish club. I probably trade more fish (or give them away) more than I sell. Equipment and set-ups are always available for cheap. And you get to hang with some fun folks.
Matt
PS I hate Walmart and won't buy anything there, even if it is a little cheaper. They're a cancer on America.