Compare and contrast department stores and discount stores.

Question

What will be an ideal response?

Answer 1

Department stores are large retail organizations characterized by wide product mixes with at least 25 employees. To facilitate marketing efforts and internal management, related product lines are organized into separate departments such as cosmetics, housewares, apparel, home furnishings, and appliances. This arrangement facilitates marketing and internal management.
Department stores are distinctly service-oriented. Their total product may include credit, delivery, personal assistance, merchandise returns, and a pleasant atmosphere. Along with large discount stores, department stores are often considered retailing leaders in a community and are generally found in areas with populations of more than 50,000.
Discount stores are self-service, general-merchandise outlets that regularly offer brand-name and private-brand products at low prices. Discounters accept lower profit margins than conventional retailers in exchange for high sales volume. To keep inventory turnover high, they carry a wide, but carefully-selected, assortment of products, from appliances to housewares to clothing. Major discount establishments also offer food products, toys, automotive services, garden supplies, and sports equipment.
Most discount stores operate in large (50,000 to 80,000 square feet), no-frills facilities. They usually offer everyday low prices, rather than relying on sales events. As conventional discount stores have grown larger and pricier in recent years, low-income and thrifty consumers have turned to extreme-value stores (also known as dollar stores and single-price stores).