What is a "discount retailer"?

What is a "discount retailer"?

• A. A store that offers luxury products at high prices
• B. A store that offers products at lower prices than traditional retailers, often by reducing overhead
• C. A store that focuses primarily on online sales
• D. A store that sells products without a physical location

Answer: (B)

A discount retailer is defined by its business model of offering products at lower prices compared to traditional retailers. This pricing strategy allows discount retailers to attract price-sensitive consumers who are looking for bargains. To achieve these lower prices, discount retailers often implement various cost-saving measures, such as reducing overhead costs. This can include lower rent by choosing locations in less expensive areas, maintaining a simpler store design, and minimizing marketing expenses. By focusing on these efficiencies, discount retailers are able to pass their savings onto customers through lower prices. This model is a competitive advantage in the retail space, particularly during economic downturns when consumers prioritize value. Through this approach, discount retailers can maintain profitability while appealing to a broad audience seeking affordability in their shopping experiences.

A discount retailer is defined by its business model of offering products at lower prices compared to traditional retailers. This pricing strategy allows discount retailers to attract price-sensitive consumers who are looking for bargains. To achieve these lower prices, discount retailers often implement various cost-saving measures, such as reducing overhead costs. This can include lower rent by choosing locations in less expensive areas, maintaining a simpler store design, and minimizing marketing expenses.

By focusing on these efficiencies, discount retailers are able to pass their savings onto customers through lower prices. This model is a competitive advantage in the retail space, particularly during economic downturns when consumers prioritize value. Through this approach, discount retailers can maintain profitability while appealing to a broad audience seeking affordability in their shopping experiences.