Ya, because the same item was way more at other stores and people didn't understand why. Most of it was logistics at first and not just cheap items. That and buying in very very large lots. It was over time that the hunt for more profits started chasing cheap items.

Really the mom and pop store was set to die in the US because of car culture. You'll pay a bit more to walk to the closest store, but if you're already driving there is very little cost in driving to a store a little farther is almost nothing.