Discount Department Stores Industry Overview

Excerpt from Discount Department Stores Report

Companies in this industry operate physical retail establishments that sell a wide variety of merchandise, including apparel, groceries, household furnishings, and personal care products. Major US companies include Kmart, Kohl's, Target, and Wal-Mart.

Competitive Landscape

Population growth and consumer spending drive demand. The profitability of individual companies depends on efficient supply chain management, effective merchandising, and competitive pricing. Large companies dominate the industry, and enjoy advantages in purchasing, distribution, and marketing. The industry is highly concentrated: the seven largest companies have nearly 100 percent of the market.

Products, Operations & Technology

Major products sold include apparel (20 percent of sales); personal care products (15 percent); groceries (9 percent); and toys (6 percent). Apparel includes women's, men's, and children's. Personal care includes cosmetics and health and beauty products. Electronics include video and audio equipment (TVs, DVD players, stereo systems). Companies may also sell kitchenware, sporting goods, towels and sheets, and footwear. Discount department stores may have instore pharmacies, photo processing services, or restaurants.