I thought of a few more reasons I'm on Team Boutique!
1. Department stores and other chains are trying to be in the banking business. They can be very agressive about their credit cards and "rewards". If I need to put it on credit, I have no business buying it. If they have nice products, I'll return. It's just that simple.
2. They do not spam me with several emails a week, nor ask for my email as soon as I click their website. I may get a couple emails a year from the local shops (and that's the way uh huh, I like it). More emails will not make me buy more often.
3. They don't play games with sales. End of the season they mark things down, or maybe a few little sales here and there. Regular retail constantly has some different offer, which is always The Biggest Sale Of The Season (and they'll remind you 8× a day). If I want the thing, and I think the price is acceptable, I'll buy it. If I don't want it, it could be free and it's not coming home with me.
4. The inventory is small so there's not a lot of waste at the end of the season. They add new things occasionally, but it's not the constant churn. With that, they're better at monitoring the condition of the things than a big store.
5. Not only are you keeping your money in the community, but the shop owners sometimes buy local too. Local books, jewelry, scarves, artwork/photography, etc can be found in our little shops.
I'm sure there are other reasons too!