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Just yesterday I heard a second instance of a small, local merchant buying merchandise at Walmart and reselling it in their own business because it's cheaper at Walmart than it is from their distributors.
This instance was a local gun shop buying ammo at Walmart and marking it up slightly to sell at his own store. Previously, my local natural food cooperative was buying cases of Tazo herbal tea from Walmart and reselling it at twice the price. So much for supporting local business.
In the past year or so, thrift stores in my area have started carrying bins and bins of this worthless plastic crap - picture frames, little table lamps, kitchen gadgets, toys, etc. When I asked where it came from they said Walmart just gives them all their junk that doesn't sell. Walmart is so overflowing with wealth and cheap quality products, it's nothing to just dump their extra inventory.
So now you can shun the Big Box businesses all you want by not giving them business - but you still might be supporting them indirectly.
A couple of years ago there was a similar article that bicycles in WM were selling at lower costs than what it cost mom-and-pops to buy. Tragic as it is, this is the "free market" in action. The mom-and-pop will sell things at a higher price to people who want the convenience of not going to a big box store. Based on my experience, especially in tough economic times, people will buy cheaper products provided the quality is about the same.