No, not usually. Usually they are replacing a less profitable, but larger grocery store with a highly profitable, smaller dollar store. It's a greater profit at the cost of product selection.
In much of the midwest wallmart in 90s went to the biggest cities every 40-60 miles then that led to all local non chain spartan grocery stores going under. Driving back to my parents over past few years have seen all the small towns that used to have a grocery store now have a DG to take care of at least some needs and having to drive an hour for some laundry soap. DG has spent a lot of time figuring out the 60% of what you need with almost all goods same price as walmart
