G'day R-J,
In Katoomba in NSW they put in a Coles/K Mart which replaced an entire block of houses, and they did exactly what you said, underpriced everyone else and drove them out of business, and now, apparently they are the most expensive Coles & K Mart in the state.
Ironically, a lot of us are hoping Woollies & Big W will lob in town soon, to provide a little competition.

John