It’s normal in London to live a few min walk to bakery, grocery, deli, so on but we still have supermarkets - from smaller ones to large hypermarkets. Everyone uses them and they sell good quality products.
The same is true in every European city I’ve been to. There’s a large hypermarket a short walk from the Arc de Triomphe and you can hardly say Parisians don’t have a good choice of local bakeries, cheesemongers and butchers.
It’s true you won’t usually get something like a Target or Costco in the central area, but in the slightly further out suburbs (e.g. Z2 in London) where most people actually live, Europe is full of supermarkets.