When most industries adjust to offer low priced products and offer low wages, some industries that produce pricey products find their market demand dwindling and their bottom-line shrinking.

Is this true?

Yes.

For example, if during a recession, society's collective disposal income goes down.

Therefore, if one company lowers their prices, society will buy their products.

The expensive company who hasn't lowered their products have therefore in fact become more expensive since they have not adjusted their prices.

Hi,
I agree with the previous answer... "yes", it's true.
In todays' America, many, many families find themselves with both partners working full-time, just to make ends meet.
Some of these married partners actually work 2 jobs, with one working 1 full-time job.
Money is tight in many households; as well as households with only 1 parent with a child or children. They are going to shop for the lowest prices they can find.
The more expensive products are usually bought by those with more money. Since some of the products are now only affordable by maybe 10% of the whole population, their selling will drop, with the majority of Americans looking for "better buys". Hence, Walmart's success.