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What are the major differences between discount stores and off-price retailers - Essay Example

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What are the major differences between discount stores and off-price retailers? The retailing industry is one of the biggest in the United States. Retailing includes “all activities involved in selling products or services directly to final consumers for their personal, non-business use…
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What are the major differences between discount stores and off-price retailers

Download file to see previous pages... The retail industry comprises a significant share of the country’s commerce. Yet, there is wide variety in the types of retail stores. There are supermarkets, discount stores, convenience stores, hypermarkets, department stores, etc. New types of retail stores are constantly evolving to fit the needs and changing lifestyles of consumers. This essay will focus on the major differences between discount stores and off-price retailers. The way a discount store works is by offering standard merchandise to consumers at low prices. Though margins tend to be quite low, high volume makes up for it and fetch profits. Previously, discount stores used to cut costs by limiting the range of services that they offered and by operating out of cheap storage facilities in heavily travelled districts. But these days, discount stores sport an improved ambience and have widened the range of services and products. But their success still depends on “keeping prices low through lean, efficient operations”. (Chapter 13, p. 370) Wal-Mart, which is a leader in this domain, follows this business philosophy. Off-price retailers, on the other hand, came in to replace markets left open by discount stores. As big discount store chains started catered to an up-scale customer base, a market for low-price stores once again cropped up. ...Download file to see next pagesRead More
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