My local record store completely dropped dance vinyl, because no one was buying it. Least of all me; but I've been through several years of reduced financial resources, and after the first three or four thousand records something really has to be amazing -- and unavailable in other formats -- for me to consider it.
During the peak for Dance Music in the US -- roughly 1996-2001 -- the whole industry got really sloppy and lazy because they could maintain cash flow without being careful about business practices. Dietrich at Complete in Brooklyn is still going strong, because in addition to his musical talents and skills, he has a real head for the business. He's also willing to work more or less alone in a crappy office in darkest Brooklyn. And what about Submerge? You may have to step around the mower and the rake to visit the store, but they're still going strong. Again, they emphasize humilty, hard work and common sense business practices. All of these distributor failures are actually a good opportunity for smart people to get into the game. You won't be able to put any sex toys on your payroll, or stuff your nose with cocaine, but if you make the connections with labels and stores, there will always be a market for vinyl.