I think local shops are still viable, but they have to offer something that the "Globals" cannot, be it product, product knowledge, differentiated service, different ambience/experience etc. I think local shops need to "think" local, they can't compete face to face with the big boys, they need a different story. Be specialised, excell in their field. Around here there are a few farm-shops doing mega-business, an amazing bakery and several very good butchers. The local cheese store (blessed are the cheesemakers... and vendors... and former vendors) does a magnificent trade and we have Waitrose, Tesco, Somerfield and Coop in tiny Abingdon. We have a good supply of small local shops that if the local council don't destroy should continue to prosper. Having said that, it's fairly affluent around here which helps.