This is the beauty of capitalism. When you have two competitors trying to gain revenue, they will lower prices towards their cost-of-goods-sold in order to win the consumer dollar. Margins will decrease, which will force them to cut costs (rents, labor, supplies).
Capitalism gives YOU the choice to choose what products you want and which business to buy them from. Most people vote by buying the products with the best value.
This is occurring with Whole Foods, whose items are extremely expensive for a marginal increase in quality (if any).