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Local grocery stores like albertsons and some of the mom and pops have them usually at the meat department. Sportsmans has some of the best big bait.
I like using the mustad L hooks. You have to be around when the flag goes up, because they can't swallow them and will eventually drop the bait. Insert hook in bunghole then run it forward and up so the tip pokes up just behind the head. Smelt sits nice on the hook that way for a good presentation, then just shake them off the hook when you get them on the ice, usually fall right off.