Is this literally 'a hole of a place'?
Yes, but it is an idiom not to be translated literally, really.
But wouldn't "The shop is a hole" be a reasonable translation? What kind of negative connotation does "dwll o le" have?
It means a real dump of a place, messy, probably dirty, untidy, unkempt, grotty, disorganised, of little use to anyone. A grot-hole, if you have ever met that expression.
That explains why it closed in 2010. Is there not another shop in Wales?
Must refer to either Wotta Lotta Crap or the Everything At £0.99 Store.
I used the wrong word Mae ( IT SHOP ! ) A shop that sell's Computers LoL