I honestly don't think knitting my own things saves me money--I enjoy doing it.
Yarn shops around here have opened and closed in record time. I honestly think that the availability of less expensive yarns and the wider variety of options on the internet has been the death of them. They tried to offer lots of classes and groups to sustain them, but it was not enough. That was probably a result of the economy.
The only place to buy fabric around here is Joann's. Any other fabric stores closed years ago, and the stores that did carry fabric have stopped doing so. Do many people even make their own clothes anymore? I don't know of anyone who sews except maybe for costumes.