Yep growing up in Australia they were a very common thing (and this was only 20-25 years ago).

Do neighborhoods still have 'deli's in Australia? Like, little 'sells everything' shops? I was there in the 70s'/early 80's, and always found it great that, in the suburbs, you might often wander around and find a 'deli'.

20c of candy in a bag, a copy of some obscure comic book for another 85c, a pack of fags for Mum, some extra milk-duds and choco-babies, and bobs your uncle!

Yes. They are still there, and like milk bars, still have an anachronistic name: newsagents. https://en.m.wikipedia.org/wiki/Newsagent%27s_shop