Many people combine businesses, and it was definitely something that was done historically. As an example, funeral homes often times were offshoots of either furniture making or carpentry businesses. However, I can't see how this business combination was looked at as a good idea, especially in 1911, when there was little to no refrigeration.
From the 1911 Sanborn map of Hillsborough
It kind of reminds me of the 1991 French movie Delicatessen.
The "guano house" (i.e. bat poop fertilizer warehouse) to the northeast is pretty interesting as well; perhaps there were more bats in the area then, but more likely it was because guano was mined extensively off the South American coast at the time.
The building stood where the movie theater (now Carolina Game and Fish) building is now located, which was built in the 1920s.
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