1. Market Research
  2. > Retail Market Trends
  3. > Discount Store

Discount Stores: Comprehensive Market Analysis

  • Currently 5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
1 vote

Topics under Discount Store

Global Discount Store Industry

The global discount store industry has long offered price conscious consumers an alternative to more expensive and traditional retail outfits. In recent years, the economic recession and its aftermath have meant that more and more consumers have joined the ranks of the price-conscious. As the economic climate remains uncertain, consumers remain reluctant to part with their money and are more likely to hunt around for a bargain. Value for money has become a central preoccupation for today’s shopper, paving the way for growth in the discount store sector.

Competition in the global discount store industry has intensified as the various players try to undercut their rivals to attract new customers and retain existing customers with low priced goods. Product lines sold by discount stores primarily include dry goods, apparel, home furnishings, groceries, automotive parts and hardware. Grocery stores and warehouse clubs do not fall into this industry category.

Market Segments

The world dollar and variety store market has been able to step in to offer cash strapped consumers cheaper alternatives in a time of economic recession. IBIS World predicts that these stores will witness strong growth over the next five-year period by focusing their marketing efforts on price-conscious consumers and low-income households.

Obstacles to growth in the global dollar and variety store market include rivalry from big-box retailers. As levels of disposable income rises, the industry may see revenue growth decline moderately. Dollar and variety stores carry a range of general merchandise, and products are normally sold at discounted prices, attracting consumers away from higher-priced alternatives offered by department stores.

Regional Market Share

The US discount store industry is dominated by four chains, namely Family Dollar, Dollar Tree, Dollar General and 99¢ Only Stores, reports Colliers International. These four combined operate almost 22,000 locations in the US, averaging between 7,000 and 10,000 square feet, with some newer locations covering more than 20,000 square feet. The four chains target different customers and adapt their store opening programs and merchandising strategies accordingly. Dollar stores concentrate on customer convenience when choosing locations. These discount chains use automobile counts on nearby roadways to maximize customers gained through easy store access. Another important factor to bring in new business is storefront visibility, especially in more competitive sectors. Dollar chain stores also take area demographics into consideration for site selection. In recent years, due to strong sales, dollar stores have been able to target better-quality real estate locations both in stand-alone and within strip center formats. Dollar stores have a wide range of site options in targeting lower-income or rural areas. While dollar stores will probably not venture into high-profile luxury shopping areas, they do enjoy a wider choice of sites due to increased acceptance and changing consumer attitudes towards dollar stores.

Discount retailing in the UK recorded growth in the four-year period ending 2010 to reach almost $45 billion due to additional new consumers and higher spending on discount goods by existing customers. The UK discount store market is predicted to reach almost $67 billion in 2015, according to research from KeyNote. State austerity measures, including tax increases and cuts in spending, mean consumer confidence has not recovered from the recent economic recession, which sees a greater number of price-conscious customers opt to shop in discount stores. Discount stores will continue to face intensifying rivalry from non-discount retailers, such as the country’s dominant supermarkets.

Read more »

Share
24/7 Customer Support

Talk to Sam

+44 20 8816 8032

1-10 of 57 reports

Discount Store Industry in the US and the UK

  • September 2016
    5 pages
  • United States  

    United Kingdom  

View report >

Discount Store Industry in Germany and the US

  • January 2015
    26 pages
  • Discount Store  

  • Germany  

    United States  

    Europe  

View report >

Discount Store Industry in the UK

  • June 2015
    10 pages
  • United Kingdom  

View report >

Variety Store Markets in the US - Forecast

  • September 2016
    12 pages
  • Variety Store  

    Grocery Store  

  • United States  

View report >

Variety Store Industry in the US

  • January 2016
    3 pages
  • Variety Store  

  • United States  

View report >

Global Retail Markets

  • November 2015
    50 pages
  • Retail  

    Hard Discount  

  • Europe  

    World  

    Germany  

View report >

The future of the Pork Industry in the UK

  • June 2015
    4 pages
  • Pork  

    Hard Discount  

  • United Kingdom  

View report >

Variety Store Industry in Canada

  • March 2015
    19 pages
  • Variety Store  

  • Canada  

View report >

Discount Store Price Trends in the UK

  • March 2015
  • Discount Store  

  • United Kingdom  

    Europe  

View report >

Variety Store Markets in the US

  • February 2015
    32 pages
  • Variety Store  

    Chemical  

    Lead  

  • United States  

View report >

Search in Discount Store Industry (57 reports)
Parent industry: Retail
Related industries: Department Store, Catalog and Mail Order, Specialty Store, Food Retailing, Wholesaling, Supermarket and Hypermarket, E-Commerce

About 300 reports

Purchase Reports From Reputable Market Research Publishers
(From € 3 960 - € 3 960)

Global Clothing and Footwear Retailing, 2015-2020; Market Dynamics, Retail Trends, and Competitive Landscape

Global Clothing and Footwear Retailing, 2015-2020; Market Dynamics, Retail Trends, and Competitive Landscape

  • € 3 960
  • Industry report
  • August 2016
  • by Verdict Retail

Summary Global clothing and footwear market is expected to grow at a faster rate during 2015-2020, fueled by growing demand from developing markets, mainly in Asia. In developed markets, such as the US, ...

The Future Of Retailing In The Us To 2020; Comprehensiv ...

June 2016 € 3 960

The Future Of Retailing In Hong Kong To 2020; Comprehen ...

June 2016 € 3 960

The Future Of Retailing In Colombia To 2020; Comprehens ...

June 2016 € 3 960

The Future Of Retailing In Saudi Arabia To 2020; Compre ...

June 2016 € 3 960

The Future Of Retailing In The Netherlands To 2020; Com ...

May 2016 € 3 960

The Future Of Retailing In Bulgaria To 2020; Comprehens ...

May 2016 € 3 960

The Future Of Retailing In India To 2020; Comprehensive ...

April 2016 € 3 960

The Future Of Retailing In Chile To 2020; Comprehensive ...

April 2016 € 3 960

The Future Of Retailing In South Africa To 2020; Compre ...

April 2016 € 3 960

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.