General merchandise retailers Shopko Stores and Pamida announced the completion of their previously announced merger that will create a $3 billion company that serves largely rural communities in 22 states.

Shopko Stores Operating Co. said that Shopko and Pamida will merge to create one of the largest U.S. retailers focused on serving smaller and rural communities.

Conventional wisdom holds that if regional discount stores, indeed, most regional stores of any ilk,...