Eh… Albertsons taketh away, and Albertsons giveth.
They recently (last year or two) divested themselves of the vast majority of their Dallas-Fort Worth stores, selling them to a local grocery chain. So in some sense, we regained a local grocer. (not that I like Minyard’s at all)
Seriously though; the grocery business is VERY low margin, much like restaurants. In practical terms, this means that economies of scale are extremely important - if a store is making a tiny percentage above cost, then anything that lowers that cost either allows them to make more money at the same price, or to lower prices so as to undercut the competition, who presumably can’t afford to drop prices and stay profitable. So you end up the low cost provider, and get all the price-sensitive business.
It’s basic economics; small town and local grocers tend to suffer dramatically versus large chains for this very reason. An example- if say… Bertolli sells Joe’s grocery olive oil at $5 per bottle if they buy X quantity, they may sell Wal-Mart, or Kroger (and its local brands) the exact same olive oil at $3/bottle, because they buy 5x the quantity. This means that if Joe sells that olive oil for $6 a bottle, Kroger can turn around and either sell it for $6, pocketing $3 in revenue, or they can sell it for $4, and make that same $1 that Joe does. Or they can split the difference and sell it for anywhere between $4 and $6 and both undercut Joe AND make more per bottle.
So ultimately what this means is that the only way a local grocer can survive in this day and age of national grocery chains is to differentiate themselves- provide USDA Prime meat, or special produce, or gourmet food, or something along those lines. Competing on price at all, is a losing proposition unless you’re another huge company like them.