It is _incredible_ the difference it makes on town culture, and _how much better it was_
Chapel Hill, NC has a Target smack dab in the middle of downtown, and everyone would agree that it's an idyllic college town with a wonderful culture.
Not all small towns have a major research university or other dependable benefactor around - most of the small town representatives can easily be bought/bribed by a major chain.
A small college town with a reputation of rich kids going to it is probably going to have an outlier amount of single people with extra money to throw around little shops. If they have families and start budgeting, they will be off to Costco and Walmart and Target to save money like the bulk of the US.
The actual town, I think, survives on the individual shop mentality because the physical layout of the town. The Ithaca town square is physically designed to be the physcial, social and cultural center of the town, which allows the shops there an advantage of being a center of the community, completely surrounded on all sides by walkable residential living. This gives them a competitive advantage, that lets them compete with the bigger box stores which require taking a bus or car a few minutes downtown to arrive at.
I guess technically, if a store can't be re-started today is kind of like also saying, if the small town can't re-start itself, then that points to question, why would a small town need to exist at all today.
Think the end of this line of reasoning is that small towns have no reason to exist, so let them go?
Correct.
But not all towns are like that.
The main benefit of small towns is that social capital matters and reputation matters. Of course those are disadvantages to misbehavers.
This is something that many young adults have forgotten, because it's increasingly more trendy to move around a lot in your 20s while developing your career. Nobody cares in a big city if you're an asshole, because there's a million other people to associate with and most likely the asshole and everyone around them aren't going to still be there in five years.
The downside of the small town social setting is that it can be cliquey.
Come to think of it, in my own county, which is not highly urban by any stretch of the imagination, you'd be maximum a half-hour drive away from the nearest DMV starting from any main road. Obviously, that doesn't hold if it takes you 15 minutes to get down your own driveway ;-)
I could easily see some of the much more remote Western small towns being further away from anything.
They open multiple Walmart's, the small town stores go out of business, then they can close some percentage of the Walmart's to consolidate into a few stores in central locations, now all of the small town people have to drive farther to get anything at all. And the small town dies.