Earlier quoted context omitted.
No, markets are a great way of finding what makes the most money for those who build the stores. That may be "the best" solution that is also aligned with the interests of the people who live there, but it might not be.
Central planning has been a colossal failure both in terms of the economy at large, and in terms of urban planning. If someone can make money by building a store, that's great, what's wrong with it? Zoning should be about keeping truly noxious activities away from residential areas, not about keeping a corner store away from where people could possibly walk to it.
The net often gets cast too widely though - so that the corners stores can't be built either.
I live in a quiet mostly rural neighborhood. I wouldn't object to a corner store replacing the nearest house. I would object to the house and all of its land getting cleared to drop a home depot in.
Unfortunately, zoning regulations prohibit both - as if there were no difference between them.