No, it doesn’t. Price wars are a death spiral, and everyone always thinks the other guy is going to go away first.
Anyone whose first method of competition is price cutting won’t be in business long.
Wal-Mart thrived because they were in rural towns, made money and grew. They dominated when they came to suburbia; but their margins are horrible, and ownership makes their living from another corporation which gets rent from Wal-Mart stores.
Then how does the actual Wal-Mart stores get income, pay their bills, and produce a profit?