The only Family Dollar in my town of 15k closed this summer. It had been in business about 15 years, but never attracted much traffic. The Walmart Neighborhood Market opening just across the street 3 years ago probably did not help.
A large Dollar General opened in the area a few months ago, making 3 DGs within 5 miles of each other.
DG really seems to be on a roll.
Still shop at the grocery store weekly, the WM is more of a "convenience" thing. Ditto Dollar Generals, their inventory is completely different from the Neighborhood WM.
I hear that in (ahem) "older" circles, that they like the Neighborhood WalMart more than the full-sized WalMart. People can get what they need, and not have to walk a country mile to get it. When you're 70+ and need a cane....that's a real selling point.