Thursday, November 21, 2019
What are the major differences between discount stores and off-price Essay
What are the major differences between discount stores and off-price retailers - Essay Example The retail industry comprises a significant share of the countryÃ¢â¬â¢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 Ã¢â¬Å"keeping prices low through lean, efficient operationsÃ¢â¬ . (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.