Yes, remarketing campaigns work for any type of business, whether it's local, national, or international. The only potential issue is that for local businesses, the audience size may be smaller. The number of add-to-carts may also be small unless thousands of people are clicking on them.
However, if you are an eCommerce store, it doesn't make sense to limit yourself to only local campaigns. Unless you only deliver goods locally, which may be the case if some items are too large to be couriered to other parts of the country, you should set up a remarketing campaign.
But instead of segmenting the audience based on add-to-carts, I suggest creating an audience of website visitors who did not add to cart or convert. This way, your audience size will be larger. Additionally, for local businesses, it's essential to show ads to as many people as possible within the local area.
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