Warehouse Clubs and Discount Department Stores Battle for Market Share

Walmart might as well be the first chain mentioned in this category. Since its founding in 1962, Walmart has flourished to become the world’s top retailer by far. How does the Walmart method work? Primarily, it meets the simple needs of average consumers by using money-back guarantees, everyday low prices, merchandise that is rarely out of stock, ease of access and floor help trained to offer assistance. Interestingly, Walmart was first conceptualized as a rural store—a modern general store if you will—located in smaller communities that lacked much in the way of local shopping facilities. However, once it had conquered hundreds of small towns, Walmart branched out into major metro areas with astonishing success, and eventually took that winning formula into foreign markets. What Walmart, Costco and other discount stores lack in profit margin, they gain exponentially in volume.

With the addition of substantial grocery departments, discount stores are taking customers, and therefore profits, from traditional department, grocery and specialty stores—today more than ever before. (Walmart’s stores generate more than one-half of total revenues through their grocery departments.) In general, discount stores are able to provide the convenience that mall-based department stores lack, while offering everyday low prices. Walmart and its competitors have plenty of parking by the door, fast centralized checkout, easy returns and quality inventory that includes broad categories of name-brand merchandise as well as value-priced store brands of high quality.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Become a Plunkett Research Online subscriber to gain unlimited access to our massive amount of vital industry data and market research.

✔ 100,000 Industry Statistics
✔ 500 Industries Analyzed for Market Size, Profits and Forecasts
✔ 150,000 Industry Executives Profiled
✔ 25,000 Companies Profiled, Ranked and Analyzed
✔ 1,000 Vital Trends Analyzed, totaling 1,000,000 words

Learn More

Warehouse Clubs and Discount Department Stores Battle for Market Share, Business and Industry Trends Analysis

A Representative List of Organizations that Have Used our Research and Products:

How to access Plunkett Research data.

What data challenge can we help you solve today?

Take a Tour

Contact

Testimonials