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by onlyrealcuzzo 438 days ago
They can also operate at a loss until they drive out all competition, and then raise prices - so that you probably end up at the same prices as before (or worse) - but with a much worse quality product (i.e. how they achieve better margins).
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Or open up more stores then the region can support, remove the local competition, and then close theirs stores as uncompetitive. The small town (population < 2000) my Mom grew up in is currently supporting their IGA as well as the Dollar Store, but my understanding is that they're in better shape then a lot of their small town neighbors.

One or two successful businesses makes a huge difference at that level. If something happened to their one large employer, a food factory, then they'd really be in trouble. The other businesses are restaurant sized at the largest.