i don't know if they'd qualify as 'mom&pop' stores, but i do shop at local businesses or regional chains.
local coffee shop (2 locations), natural foods store (1 location), bloom K&G and old time pottery are all regional chains i believe.
oh, and my pop owns a cigar store and my mom is a shareholder, which i guess makes it a mom&pop store
they have lots of loyal customers, and it's the service (well, with my dad i guess it's disservice!) that keeps them coming back.
with that said, big cigar retails like j.r. thompson catalogs sell their cigars for less than my dad can purchase them wholesale, even on brands that supposedly won't sell that low to any retailer. thompson is the walmart of cigars, basically. what the catch? their cigars aren't kept properly in the warehouse and their quality is low as a result, whereas my dad has a 225 sf walk-in humidor. smaller scale but much better quality.