I don't think the size of the warehouse matters - that's like caring how a big the kitchen is at a great restaurant. It's the experience of finding the thing you spend money on, and then getting whatever value it is you hoped for.

There is a physical constraint aspect to local businesses that create an inherent diversity. Being next to a huge store curated by one entity is much different.

Would you rather live next to a Wal-Mart or a thriving strip/block with a dozen or so various options? It depends on your needs and desires I suppose.