Giant super- and hypermarkets are losing out to the competitions because of silly regulations that they impose on customers. Such regulations will drive customers away. For example, they prohibit customers from taking any forms of bags including backpacks into the shopping areas. Also, no cameras allowed...but they let people with mobile phones (with camera better than some older Point & Shoot's) in! What dinosaur is that?
And most importantly, their prices are most often the most expensive no matter how hard they try to fool us.