Sounds like the grocery stores were not serving their customer base well if they couldn’t compete with “overpriced” dollar stores.
Carrying cost of produce does not add up. If produce is going bad at that spoilage rate the store management fucked up and didn’t order the correct amount of product for the location. You can’t wish your way into a product mix.
Nothing was stopping grocery stores from identifying this need. Pretending your customer base is more affluent than it is sounds like a quick way to go out of business to me.
Then feel free to explain the studies and articles online describing how dollar stores are fucking rural grocery stores.