large supermarkets (naturally can't be just in every small neighborhood) -> efficiency and lower costs. What is the point of local (thus small and high priced) store that a senior can walk to, yet can't afford to shop at?
Cars are expensive, the total domination of personal cars is only possible if you are a rich country. Much like gout.
For a local market to be economical it needs a catchment area containing enough customers.
Once customers start driving they prefer to drive a bit longer to go to a mega market or mall with good parking options, i.e. not a local market.
Local markets thus have a catchment area that is defined mostly by walking and biking.
(Not having a lot of parking can also help to make local markets more economical)
Some important conditions for local markets are then:
1. Zoning needs to allow the shop to be very close to residential areas, and with only few parking spaces.
2. Residential density needs to be high enough to have a large number of customers within walking or biking distance.
3. Walking and biking should be sufficiently safe and pleasant.
It is easy to see the why there are few local markets in suburban North America, but they are very common in urban places all over the world, as well as in thoughtfully designed and slightly denser suburbs in many countries.