Discount store
Encyclopedia
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
, which sells products at price
Price
-Definition:In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.In modern economies, prices are generally expressed in units of some form of currency...
s lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances. Discount stores are not variety stores, which sell goods at a single price-point or multiples thereof (£1, $2, etc.). Discount stores differ from variety stores in that they sell many name-brand products, and because of the wide price range of the items offered. Following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, a number of retail establishments in the U.S. began to pursue a high-volume, low-profit-margin strategy designed to attract price-conscious consumers.
Currently Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, the largest retailer in the world, operates more than 1,300 discount stores in the U.S. Target and Kmart
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...
are Wal-Mart's top competitors. Wal-Mart as of 2004, owns 90% of the Asda
Asda
Asda Stores Ltd is a British supermarket chain which retails food, clothing, general merchandise, toys and financial services. It also has a mobile telephone network, , Asda Mobile...
chain of supermarkets in the UK. As of 2008, the main rival to Asda is Tesco
Tesco
Tesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
.
History
During the period from the 1950s to the late 1980s, discount stores were more popular than the average supermarketSupermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
or department store in the United States. There were hundreds of discount stores in operation, with their most successful period occurring during the mid-1960s in the U.S. with discount store chains such as Kmart
Kmart
Kmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
, Ames, E. J. Korvette
E. J. Korvette
E. J. Korvette, also known as Korvette's, was an American chain of discount department stores, founded in 1948 in New York City. It is notable as one of the first department stores to challenge the suggested retail price provisions of anti-discounting statutes. Founded by World War II veteran...
, Fisher's Big Wheel
Fisher's Big Wheel
Fisher's Big Wheel was a discount department store chain based in New Castle, Pennsylvania, United States. The company operated stores under the Fisher's Big Wheel and Buy Smart names. At its peak, the chain comprised more than 100 stores in the Northeastern and Midwestern United States. The chain...
, Zayre
Zayre
Zayre was a chain of discount stores that operated in the Northeastern, Southern and Midwestern United States from 1956 to 1990. The company's headquarters was in Framingham, Massachusetts. In 1988, the Zayre department stores were sold to the parent company of the competing Ames chain, and Zayre's...
, Bradlees
Bradlees
Bradlees was a chain of discount department stores which operated primarily in the Northeastern United States. The chain went bankrupt in 2000 and all of its stores were closed by March 2001.-History:...
, Caldor
Caldor
Caldor was a chain of American discount department stores headquartered in Norwalk, Connecticut, operating throughout the northeastern United States. At one time, the company was a subsidiary of May Department Stores; Caldor was among the country's largest discount retailers.Despite being a popular...
, Jamesway
Jamesway
Jamesway was a chain of discount department stores based in Secaucus, New Jersey. It was founded in 1961 with a store in Jamestown, New York, and at its peak operated 138 stores in the Northeast and mid-Atlantic regions....
Howard Brothers Discount Stores
Howard Brothers Discount Stores
Howard Brothers Discount Stores was a chain of discount stores in the Southeastern United States. The chain was founded in 1959 by Alton Howard and W.L. "Jack" Howard. In 1986, the now 87-store chain was later purchased by Wickes...
, Kuhn's-Big K
Kuhn's-Big K
Kuhn's-Big K, usually advertised as "Big K," was a large discount store chain in the Southeastern United States that merged with Wal-Mart in 1981 . It once comprised 106 stores...
(sold to Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
in 1981), TG&Y
TG&Y
TG&Y was a five and dime, or variety store, chain in the United States. The chain was named for its three founders: Rawdon E. Tomlinson, Enoch L. "Les" Gosselin, and Raymond A. Young. The initials were ordered according to the age of the three, with Tomlinson being the oldest. Founded in 1935,...
and Woolco
Woolco
Woolco was an American-based discount retail chain. It was founded in 1962 in the city of Columbus, Ohio, by the F.W. Woolworth Company. It was a full-line discount department store unlike the five-and-dime Woolworth stores which operated at the time. At its peak, Woolco had hundreds of stores in...
(closed in 1983, part sold to Wal-Mart) among others.
Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, Kmart
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...
, and Target
Target Corporation
Target Corporation, doing business as Target, is an American retailing company headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart. The company is ranked at number 33 on the Fortune 500 and is a component of the Standard & Poor's...
all opened their first locations in 1962. Other retail companies branched out into the discount store business around that time as adjuncts to their older store concepts. As examples, Woolworth opened a Woolco
Woolco
Woolco was an American-based discount retail chain. It was founded in 1962 in the city of Columbus, Ohio, by the F.W. Woolworth Company. It was a full-line discount department store unlike the five-and-dime Woolworth stores which operated at the time. At its peak, Woolco had hundreds of stores in...
chain (also in 1962); Montgomery Ward
Montgomery Ward
Montgomery Ward is an online retailer that carries the same name as the former American department store chain, founded as the world's #1 mail order business in 1872 by Aaron Montgomery Ward, and which went out of business in 2001...
opened Jefferson Ward; Chicago-based Jewel
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
launched Turn Style
Turn Style
Turn Style was a chain of discount department stores and was a division of Chicago-based Jewel, the parent company of the Jewel Food Stores supermarket chain. Each Turn Style had an Osco Pharmacy, at the time very uncommon for a discount store in the 1960s and 1970s...
; and Central Indiana-based L. S. Ayres created Ayr-Way. J.C. Penney
J.C. Penney
J. C. Penney Company, Inc. is a chain of American mid-range department stores based in Plano, Texas, a suburb north of Dallas. The company operates 1,107 department stores in all 50 U.S. states and Puerto Rico. JCPenney also operates catalog sales merchant offices nationwide in many...
opened discount stores called Treasure Island or The Treasury, and Atlanta-based Rich's
Rich's
Rich's was a department store retail chain, headquartered in Atlanta, Georgia, that operated in the southern U.S. from 1867 until March 6, 2005 when the nameplate was eliminated and replaced by Macy's...
owned discount stores called Richway. During the late 1970s and the 1980s, these chains typically were either shut down or sold to a larger competitor. Kmart and Target themselves are examples of adjuncts, although their growth prompted their respective parent companies to abandon their older concepts (the S.S. Kresge five and dime
Five and Dime
Five and Dime is a cartoon short by Walter Lantz which features Oswald the Lucky Rabbit. It is the 74th Oswald short produced by Lantz and the 125th overall. It also is among the number of shorts that feature Oswald in his fully clothed appearance....
store disappeared, while the Dayton-Hudson Corporation
Target Corporation
Target Corporation, doing business as Target, is an American retailing company headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart. The company is ranked at number 33 on the Fortune 500 and is a component of the Standard & Poor's...
eventually divested itself of its department store holdings and renamed itself Target Corporation).
In the United States, discount stores had 42% of overall retail market share in 1987; in 2010, they had 87%.
Many of the major discounters now operate "supercenters
Hypermarket
In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise...
", which add a full-service grocery store to the traditional format. The Meijer
Meijer
Meijer, Inc. is a regional American hypermarket chain based in Grand Rapids, Michigan. Founded in 1934 as a supermarket chain, Meijer is credited with pioneering the modern supercenter concept in 1962. About half of the company's 196 stores are located in Michigan, with additional locations in...
chain in the Midwest consists entirely of supercenters, while Wal-Mart and Target have focused on the format as of the 1990s as a key to their continued growth. Although discount stores and department stores have different retailing goals and different markets, a recent development in retailing is the "discount department store", such as Sears Essentials, which is a combination of the Kmart and Sears formats, following the companies' merger as Sears Holdings Corporation
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...
.
Japan
Japan has numerous discount stores, including CostcoCostco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
, and Mr Max.
See also
- Department storeDepartment storeA department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
- Variety store
- HypermarketHypermarketIn commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise...
- SupermarketSupermarketA supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
- Grocery storeGrocery storeA grocery store is a store that retails food. A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are...
- Warehouse clubWarehouse clubA warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers are required to buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners. The clubs are able to keep prices low...
- No frillsNo frillsNo-frills or no frills is a term used to describe any service or product for which the non-essential features have been removed to keep the price low. The use of the term "frills" refers to a style of fabric decoration...