It doesn't need to be better, just different. Based on the test market, Amazon's offering would appear to address a very different segment from Dollar General, which often serves communities where the nearest Walmart is an hour away.
Amazon doesn't need to be cheaper than Dollar General, just the grocery section at CVS.
They really are. I'm always impressed with how much they can squeeze out of the small footprint of their stores. I wonder if they could link up with Pyxis or similar to do tele/robo pharmacy.
Hell my driveway is a third of a mile long. If the truck gets 15mpg and the driver drives 10mph at $30/hr it costs UPS about 2 bucks just to drop a package off at my front door.
Amazon doesn't need to be cheaper than Dollar General, just the grocery section at CVS.