Is there any thing called " BRAND LOYALTY"

I have been a regular customer of the neighborhood pharmaceutical store and have known the owner since the past 8 years and one fine day i see a new store coming up where there was a banner offering the customers a Discount of 10 % on the purchases and i started buying from this discount store (medplus) and as days passed on the traffic in this new store increased effecting the sales of the old pharmaceutical store. now the big question is when there was a trust and a good relationship with the old store why did i stop going there...?? I think the most obvious reason is the fact that the store was offering discounts and with its pricing strategy it was getting in more customers a consumer will always look for rational benefits and how is he benefiting from it..
many U.S stores were closed due to the same story where in Walmart used to come up with a store with deep discounts and sweep the market as a result many neighborhood stores were closed down not able to compete with Walmart , in few small cities people formed groups and protested against walmart and were successful at it.. Walmart is known for its ruthless competition.. this story would follow in India also as most of the retail sector is Unorganized and Walmart would compete fiercely with Indian retail giants..for sure there would be a battle among the retailers to gain share of the pie...It's the consumer who would be gaining from all this but what about those businesses that constitute 94 % unorganized retail sector...????