PlasticPole: a lot of times their food is stale That's a pretty broad stroke of the brush. Some are and some aren't...
PlasticPole: their prices are high. That's the real reason they cannot compete. But why is their price high? They don't get the best prices because their volume / turnover is lower. When you are as large as Wal Mart, you get to beat the suppliers down in prices (because you are the biggest game in town) and you have a remarkably lean distribution system, minimizing freight costs to get the stuff to store. The mom and pop shops either do their own pick-up and delivery from a wholesaler (a middleman who also takes a cut!) or get it delivered at a premium. Those costs have to be borne by somebody.
With the Wal Mart model, you can operate on thin margins, because you have the sales volume.
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