Yes, that is apparently one of their strategies. One way to look at it is that they are subsidizing the construction of new buildings for Home Depot!

But that's not the same as putting small businesses out of business...

"Critics of Wal-Mart and some academic studies, particularly out of the University of Iowa, claim that Wal-Mart displaces locally-owned stores resulting in the reduction of locally-owned corporate assets and real estate, and the destruction or displacement of higher paying jobs. Other studies, including several recently from the University of Missouri, have claimed that Wal-Mart stores either do not have negative impacts or have been found to positively impact a community by effecting lower prices, increased employment, and increased establishment counts."
http://en.wikipedia.org/wiki/Wal-Mart

Obviously this topic is so controversial that one may question the accuracy of the Wikipedia article...