A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on

bulk purchasing Bulk purchasing or mass buying is the purchase of much larger quantities than the usual, for a unit price that is lower than the usual. Wholesaling is selling goods in large quantities at a low unit price to retail merchants. The wholesaler will ...

and efficient distribution to keep down costs.

Types (United States)

Discount stores in the United States may be classified into different types:

Hypermarkets (superstores)

Discount superstores such as Walmart or

Target Target may refer to: Physical items * Shooting target, used in marksmanship training and various shooting sports ** Bullseye (target), the goal one for which one aims in many of these sports ** Aiming point, in field artillery, fi ...

sell general merchandise in a

big-box store A big-box store (also hyperstore, supercenter, superstore, or megastore) is a physically large retail establishment, usually part of a chain of stores. The term sometimes also refers, by extension, to the company that operates the store. The te ...

; many have a full grocery selection and are thus

hypermarket A hypermarket (sometimes called a hyperstore, supercentre or superstore) is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including ...

s, though that term is not generally used in North America. In the 1960s and 1970s the term "discount department store" was used, and chains such as Kmart,

Zodys Hartfield-Zodys was an American retail corporation begun in 1960. It operated the Hartfield chain of women's ready-to-wear apparel in the Los Angeles area, and starting in 1960, the Zodys chain of discount retail stores (1960–1986), which oper ...

and

TG&Y TG&Y was a five and dime, or chain of variety stores and larger discount stores in the United States. At its peak, there were more than 900 stores in 29 states. Starting out during the Great Depression in rural areas and eventually moving into citi ...

billed themselves as such. The term "discount department store" or "off-price department store" is sometimes applied to big-box discount retailers of apparel and home goods, such as

Ross Dress For Less Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California. It is the largest off-price retailer in the U.S.; as of 2018, Ross operates 1,483 stor ...

, Marshalls,

TJ Maxx TJ Maxx (stylized as T•J•maxx) is an American department store chain, selling at prices generally lower than other major similar stores. It has more than 1,000 stores in the United States, making it one of the largest clothing retailers in ...

, and Kohls.

Category killers

So-called

category killer A category killer is a retailer, often a big-box store, that specializes in and carries a large product assortment of a given category. Their wide merchandise selections, deep supply, large buying power, and a comparative advantage to other retailer ...

stores, specialize in one type of merchandise and sell it in

s. Examples include: *Apparel:

, Marshalls, Kohls, etc. *Pet supplies: Petco, Petsmart *Home furnishings and accessories:

Big Lots Big Lots Stores, Inc. (stylized as Big Lots!) is an American retail company headquartered in Columbus, Ohio with over 1,400 stores in 47 states. History The Big Lots chain traces its history back to 1967 when Consolidated Stores Corporation ...

HomeGoods HomeGoods is a chain of home furnishing stores headquartered in Framingham, Massachusetts. It was founded as a small chain in 1992, and grew to include hundreds of locations throughout the United States. HomeGoods sells furniture, linens, cooki ...

*Office supplies: Staples, Office Depot,

OfficeMax OfficeMax is an American office supplies retailer founded in 1988. It is now a subsidiary of The ODP Corporation, which is headquartered in Boca Raton, Florida. As of December 2012, OfficeMax operated 941 stores in 47 states, Puerto Rico, the U.S ...

Warehouse clubs

When membership is required, discount superstores are known as warehouse clubs, and often require purchases of larger sizes or quantities of goods than a regular superstore. The main national chains, both of which have operations outside the U.S., are

Costco Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only big-box retail stores (warehouse club). As of 2022, Costco i ...

and Sam's Club.

Discount grocery store

Major discount

grocery store A grocery store ( AE), grocery shop ( BE) or simply grocery is a store that primarily retails a general range of food products, which may be fresh or packaged. In everyday U.S. usage, however, "grocery store" is a synonym for supermarket, an ...

retail chains in the U.S. include

Aldi Aldi (stylised as ALDI) is the common company brand name of two German multinational family-owned discount supermarket chains operating over 10,000 stores in 20 countries. The chain was founded by brothers Karl and Theo Albrecht in 1946, when t ...

, Lidl, Trader Joe's, Save-A-Lot and Grocery Outlet. Currently

and Lidl are the largest discount retailers in the world operating more than 25,000 discount stores worldwide between them.

Variety stores, dollar stores, five and dimes

Variety stores in the U.S. today most commonly known as

dollar store A variety store (also five and dime (historic), pound shop, or dollar store) is a retail store that sells general merchandise, such as apparel, automotive parts, dry goods, toys, hardware, home furnishings, and a selection of groceries. It u ...

s such as Dollar General, Family Dollar and Dollar Tree, which sell goods usually only at a single price-point or multiples thereof (£1, $2, etc.). During the early and mid-twentieth century they were commonly known as "five and dimes" or "dime stores". Stores of the main chains,

Woolworth's Woolworth, Woolworth's, or Woolworths may refer to: Businesses * F. W. Woolworth Company, the original US-based chain of "five and dime" (5¢ and 10¢) stores * Woolworths Group (United Kingdom), former operator of the Woolworths chain of shop ...

J. J. Newberry J. J. Newberry's was an American five and dime store chain in the 20th century. It was founded in Stroudsburg, Pennsylvania, United States, in 1911 by John Josiah Newberry (1877–1954). J. J. Newberry learned the variety store business by workin ...

and

S. S. Kresge Sebastian Spering Kresge (July 31, 1867 – October 18, 1966) was an American businessman. He created and owned two chains of department stores, the S. S. Kresge Company, one of the 20th century's largest discount retail organizations, and the ...

, lined the shopping streets of U.S. downtowns and suburbs, and starting in the 1950s they also opened branches in shopping malls. These chains originally sold items for 5, 10 or 25 cents, but many later moved to a model with flexible price points, with a variety of general merchandise at discounted prices, in formats smaller than today's discount superstores.

History

United States

During the period from the 1950s to the late 1980s, discount stores were more popular than the average

supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...

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,

Ames Ames may refer to: Places United States * Ames, Arkansas, a place in Arkansas * Ames, Colorado * Ames, Illinois * Ames, Indiana * Ames, Iowa, the most populous city bearing this name * Ames, Kansas * Ames, Nebraska * Ames, New York * Ames ...

Two Guys Two Guys from Harrison (later shortened to Two Guys) is a former discount store chain founded in 1946 by brothers Herbert and Sidney Hubschman in Harrison, New Jersey, originally selling major appliances such as televisions. The chain acquired ...

Gibson's Discount Center Gibson's Discount Center, also known as Gibson's, was a large discount store chain in the United States. There are a few Gibson's Discount Centers still operating under independent ownership; two in Texas in Weatherford and Kerrville, and two ...

E. J. Korvette E. J. Korvette, also known as Korvettes, was an American chain of discount department stores, founded in 1948 in New York City. It was one of the first department stores to challenge the suggested retail price provisions of anti-discounting st ...

Mammoth Mart Mammoth Mart was a discount department store chain, located in the northeastern United States, primarily in the New England area. The chain was founded by Max Coffman and Henry Gornstein in Framingham, Massachusetts in 1956, and was something o ...

Fisher's Big Wheel Fishers Big Wheel, sometimes known as just 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 comp ...

Zayre Zayre () was a chain of discount stores that operated in the eastern half of the United States from 1956 to 1990. The company's headquarters was in Framingham, Massachusetts. In October 1988, Zayre's parent company, Zayre Corp., sold the stores ...

Bradlees Bradlees Department Store, more commonly known as Bradlees, was a discount department store chain based in Braintree, Massachusetts, which operated primarily in the Northeastern United States. Bradlees sold various retail items in its stores, inc ...

Caldor Caldor, Inc. was a discount department store chain founded in 1951 by husband and wife Carl and Dorothy Bennett. Referred to by many as the Bloomingdale's of discounting, Caldor grew from a second story "Walk-Up-&-Save" operation in Port Ches ...

Jamesway Jamesway Corporation, more commonly known as Jamesway, was a chain of discount department stores based in Secaucus, New Jersey. It was founded in 1961 with a single store in Jamestown, New York, ultimately growing into a chain that, at its peak, ...

Howard Brothers Discount Stores Howard Brothers Discount Stores (informally known as Howard Brothers and Howard's) was a chain of discount stores in the Southeastern United States. The chain was founded in 1959 by Alton Hardy Howard and W. L. "Jack" Howard, a five-term mayor o ...

Kuhn's-Big K Kuhn's-Big K, (typically signed as simply Big K) was a large discount store chain in the Southeastern United States that merged with Walmart in 1981 The store is entirely unrelated to, and preceded, Big Kmart History Kuhn's-Big K began in 1 ...

(sold to Walmart in 1981),

and

Woolco Woolco was an American-based discount retail chain. It was founded in 1962 in 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 i ...

(closed in 1983, part sold to Wal-Mart) among others. Walmart, Kmart, and

all opened their first locations in 1962. Kmart was a venture of S. S. Kresge Company that was a major operator of

dime stores A variety store (also five and dime (historic), pound shop, or dollar store) is a retail store that sells general merchandise, such as apparel, automotive parts, dry goods, toys, hardware, home furnishings, and a selection of groceries. It us ...

. 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

chain (also in 1962);

Montgomery Ward Montgomery Ward is the name of two successive U.S. retail corporations. The original Montgomery Ward & Co. was a world-pioneering mail-order business and later also a leading department store chain that operated between 1872 and 2001. The curre ...

opened

Jefferson Ward Jefferson may refer to: Names * Jefferson (surname) * Jefferson (given name) People * Thomas Jefferson (1743–1826), third president of the United States * Jefferson (footballer, born 1970), full name Jefferson Tomaz de Souza, Brazilian foo ...

; Chicago-based Jewel launched

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. Some mid-western Turn Styles had an Osco Pharmacy, at the time very uncommon for a d ...

; and Central Indiana-based L. S. Ayres created Ayr-Way.

J. C. Penney Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is a midscale American department store chain operating 667 stores across 49 U.S. states and Puerto Rico. Departments inside JCPenney stores include Mens, Womens, Boys, Girl ...

opened discount stores called Treasure Island or The Treasury, Sheboygan, Wisconsin based H. C. Prange Co. opened a chain of discount stores called Prange Way, and Atlanta-based Rich's owned discount stores called

Richway Richway was the discount department store division of Atlanta-based Rich's. It was originally part of Rich's, and was later bought by Federated Department Stores when they purchased the Rich's chain. It was originally known as Richway, a Rich' ...

. 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

five and dime store disappeared, while the Dayton-Hudson Corporation 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", which add a full-service grocery store to the traditional format. The

Meijer Meijer Inc. (, ; stylized as meijer) is an American supercenter chain that primarily operates throughout the Midwest. Its corporate headquarters are in Walker, Michigan, which is a part of the Grand Rapids metropolitan area. Founded in 1934 a ...

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, after the companies' merger as Sears Holdings Corporation.

Canada

Woolworths Woolworth, Woolworth's, or Woolworths may refer to: Businesses * F. W. Woolworth Company, the original US-based chain of "five and dime" (5¢ and 10¢) stores * Woolworths Group (United Kingdom), former operator of the Woolworths chain of shop ...

entered Canada in the 1920s, the stores were converted to the

Foot Locker Foot Locker Retail, Inc. is an American sportswear and footwear retailer, with its headquarters in Midtown Manhattan, New York City, and operating in 28 countries. Although established in 1974, and founded as a separate company in 1988, Foo ...

Champs Sports Champs Sports is an American sports retail store, it operates as a subsidiary of Foot Locker. Products sold at Champs Sports include apparel, equipment, footwear, and accessories. As of June 2019, there were 540 store locations found throughout th ...

and other stores in 1994.

Kresge's Kmart Corporation ( , doing business as Kmart and stylized as kmart) is an American retail company that owns a chain of big box department stores. The company is headquartered in Hoffman Estates, Illinois, United States. The company was inco ...

, a competitor to Woolworth's entered the Canadian market in 1929. Zellers was founded in 1931, and was acquired by the

Hudson's Bay Company The Hudson's Bay Company (HBC; french: Compagnie de la Baie d'Hudson) is a Canadian retail business group. A fur trade, fur trading business for much of its existence, HBC now owns and operates retail stores in Canada. The company's namesake b ...

in 1978.

Giant Tiger Giant Tiger Stores Limited is a Canadian discount store chain which operates over 260 stores across Canada. The company's stores operate under the Giant Tiger banner in Alberta, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island ...

opened its first store in Ottawa in 1961, modeled on

Winners Winners Merchants International L.P is a chain of off-price Canadian department stores owned by TJX Companies. It offers brand name clothing, footwear, bedding, furniture, fine jewelry, beauty products, and housewares. Products are at a 20-60% ...

was founded in 1982 in Toronto, and sells off-price brand clothing.

entered Canada in 1986. In 1990, the American chain Walmart purchased the

chain in Canada, and converted the stores to Walmarts.

Dollarama Dollarama is a Canadian dollar store retail chain headquartered in Montreal. Since 2009 it is Canada's largest retailer of items for five dollars or less. Dollarama has over 1400 stores and has a presence in every province of Canada; Ontario has ...

was founded in Quebec in 1992. In 1998, Zellers bought out Kmart Canada, taking over its stores. In 2011, Marshalls, owned by the American

TJX Companies The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts. It was formed as a subsidiary of Zayre Corp. in 1987, and became the legal successor to ...

, entered Canada, and Zellers sold most of its stores to

Target Canada Target Canada Co. was the Canadian subsidiary of the Target Corporation, the eighth-largest retailer in the United States. Formerly headquartered in Mississauga, Ontario, the subsidiary was formed with the acquisition of Zellers store leases fr ...

filed for bankruptcy in 2015, selling its stores to Walmart, Lowe's and

Canadian Tire Canadian Tire Corporation, Limited is a Canadian retail company which operates in the automotive, hardware, sports, leisure and housewares sectors. Its Canadian operations include: Canadian Tire (including Canadian Tire Petroleum gas stations a ...

. In 2016, the

started opening Saks Off 5th locations to sell off-price brands. American off-price chain

Nordstrom Rack Nordstrom Rack is an American off-price department store chain founded in 1973. It is a sister brand to the luxury department store chain Nordstrom. As of 2021, Nordstrom Rack operates 352 stores in 41 U.S. states and three Canadian provinces ...

opened its first Canadian location in

Vaughan Mills Vaughan Mills is a regional outlet mall located at the southeast quadrant of the Highway 400 and Rutherford Road interchange in Vaughan, Ontario, just south of Canada's Wonderland. It is one of the largest enclosed shopping centres in Canada, ...

in 2018.

Transnationals

* BİM *

Daiso is a large franchise of 100-yen shops founded in Japan. The headquarters are in Higashihiroshima, Hiroshima Prefecture. Daiso has a range of over 100,000 products, of which over 40 percent are imported goods, many of them from China, South Kore ...

* Dia (supermarket chain) * Lidl *

Netto (store) Netto () is a Danish discount supermarket operating in Denmark, Germany, Poland, and previously in Sweden and the United Kingdom both as a stand-alone venture, until its sale in May 2010 to Asda, and via a joint venture with Sainsbury's between ...

* Penny *

* Usave * Walmart

By country

Outside the United States and Canada, the main discount store chains listed by country are as follows:

Australia

Big W Big W (stylized as BIG W) is an Australian chain of discount department stores, which was founded in regional New South Wales in 1964. The company is a division of Woolworths Group and as at 2019 operated 176 stores, with around 22,000 employ ...

, Kmart,

The Reject Shop The Reject Shop Limited () is an Australian discount variety store chain selling a range of goods such as food, snacks, gift cards and party, health and beauty aids, cleaning supplies, storage, kitchenware, homewares and seasonal items in 356 st ...

, Cheap and Chips, Dollars and Sense, Shiploads, Red Dot.

Argentina

* Dia

Austria

* Lidl *

* Penny

Angola

*Usave

Types (United States)

Hypermarkets (superstores)

Category killers

Warehouse clubs

Discount grocery store

Variety stores, dollar stores, five and dimes

History

United States

Canada

Transnationals

By country

Australia

Argentina

Austria

Angola

Belgium

Botswana

Bosnia and Herzegovina

Brazil

Bulgaria

Chile

China

Colombia

Costa Rica

Croatia

Cyprus

Czech

Denmark

Greece

Guatemala

Egypt

El Salvador

Estonia

Eswatini

Finland

Germany

Honduras

Latvia

Hungary

Ireland

Lithuania

Luxembourg

Italy

Japan

Malaysia

Malta

Malawi

Mexico

Lesotho

Morocco

Mozambique

Namibia

The Netherlands

New Zealand

North Macedonia

Nicaragua

Peru

Poland

Portugal

Panama

Romania

Russia

Serbia

Slovakia

Slovenia

South Africa

Spain

Sweden

Switzerland

Turkey

Ukraine

United Kingdom

Venezuela

See also

References

Further reading