¶ … Marketing
The superstore, the discount store, the warehouse club and the factory outlet are all large size stores selling the commodities at lower prices. However, they do differ in some aspects. As such, the superstore is a retail facility selling a wide variety of products necessary for living, at supermarket prices. An example of superstore is Wal-Mart. The discount stores are department stores also selling a wide array of products and commodities produced by reputable as well as less known manufacturers. They sell them at prices lower than the traditional retailers. The warehouse clubs also sell a large palette of products, but they request their shoppers to purchase membership in order to get access to the store's products (such as Sam's Club). Finally, the factory outlet is a retail facility owned by branded manufacturers, who sell their products at lower prices. The products that can be found in outlets may have imperfections or may belong to the previous season.
The super store is the average supermarket which will attract those who place emphasis on the cost efficiency of their purchases. They will normally attract the average consumer. Discount stores will attract the more specific shopper, looking to buy branded goods, but at lower prices. The warehouse club will generally attract large families or small entrepreneurs who make high volume purchases. Finally, the factory outlet will attract the more specific customers, looking for a particular brand and quality, but also wanting to pay less than in a traditional retail facility.
Superstores have the advantage of a wide product offering, but the disadvantage of a potentially reduced quality of the merchandise. The discount stores benefit from branded goods in generally large quantities, but their quality might be reduced. The warehouse clubs request the payment of a membership, but offer an extensive product palette at high cost efficiencies. The factory outlets offer branded goods at lower prices, but the variety of the merchandise is often reduced as the items are generally what is left at the end of a season.
Reference:
Burrow, J.L., Eggland, S.A., 2005, Intro to Business: Finance, Marketing, Operations, Management, Cengage Learning
