An interesting twist on the whole competition thing is San Antonio, TX. The ONLY grocery store there is HEB. I have no idea how, but they've been able to run every other grocery store out of town. I'm not sure what it's like most places, but in Houston and here in Atlanta there are many choices for grocery stores.

Wal Mart only started building their super stores (the ones with groceries) in SA in the last few years- they've been the only ones able to compete. HEB is in no danger from them, though. Even with slightly higher prices they seem to be doing fine.

Kind of seems to be the reverse of the normal story- usually it's Wal Mart driving everyone out.