Economic efficiency win

From FailBlog, under the title "Business Plan Fail":

Yes, it's kind of funny. But it might be the right thing for the neighborhood.

I spent some time in a small town far from anywhere, which had 3 retail establishments. 1 department store, 1 restaurant + laundromat + video rental store, and 1 fishing/hunting store + gas station. It was an efficient solution for providing essential retail services. Out of the 1000 people in the town, less than 20 were devoted to retail. That's 2% of the population, or maybe 5% of the local labor force.

I know the modern trend is towards highly branded, tightly focused businesses. But would this town be better off with a standalone beauty salon, specialty chain saw dealer, and an Applebee's? Sounds like a lot of wasted retail labor for a doubtful increase in quality.