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More personal.
I'm free to give water to passing cyclists/ walkers. Or let them use our toilets. The chain HM works for actively discourages anyone trying to use the facilities or get free drinks. I like to think people's days are better for it.
We also uphold the East End tradition of free bar food on Sundays. Only cheese & crackers because we sell Sunday lunches. But it's welcoming. None of the chains offer this.
The shop I worked in in Leicester often offered extra services to customers that they would not have had from department store. We bent over backwards to help our customers because although we were on a set wage, we worked alongside the owners.
There is definitely place for both, but I try to patronise small local businesses where possible. Once they're gone, they're gone and the personal touch and any kind of negotiation is gone with it.
Also, in the wider view - local is far better for the environment.
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