I didn't see any review that mentioned this, but sometime in 2008 (I believe), the store was sold to new owners. The previous owners had a new endeavor to pursue and opened up the store Stupid Cupid right in the same plaza - it's a very cool home decor/accessory store, with great owners.
However, Smelly Dog has been on the decline ever since this transition. The only reason I continued going there is because they carried my dog's favorite treat. They just stopped carrying it.
I've never had them wash my dog, but I can say that the service is just not what it used to be at all. I'm so sad that things changed, because I used to love coming here.