Where I am, shopping locally is a non-starter unless you are a) very wealthy, and b) only want boutique items or organic food. Vermont has the smallest population of any state in the nation. Our major metro area is like 100k, and that’s if you include a whole chunk of the NW part of the state around Burlington. We don’t even get a lot of chains, or car brands up here, and small specialty shops die like flies because there are no customers. I do my grocery shopping mostly at Hannaford’s, a Maine-based regional company that is good about using local stuff when possible, but with the exception of arts and crafts or organic foods, the only really local stores are selling high-priced yuppie stuff or things for the tourist trade.
On another note, Amazon is a place where a lot of small retailers sell stuff too, so it isn’t so black and white really. Even if Amazon is evil incarnate, I don’t think we could get by without it, as so many things from toiletries to ebooks are pretty much available only through them (or perhaps someone equally monolithic).