# Discount store > Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Discount_store > Markdown URL: https://mediated.wiki/source/Discount_store.md > Source: https://en.wikipedia.org/wiki/Discount_store > Source revision: 1355932822 > License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/) **Discount stores** are retail establishments that sell products at prices lower than the standard or [recommended retail price](/source/List_price). Discounters rely on [bulk purchasing](/source/Bulk_purchasing) and efficient [distribution](/source/Logistics) to keep down costs.[1] They include [hypermarkets](/source/Hypermarket), "[category killer](/source/Category_killer)" [big box stores](/source/Big_box_store), [warehouse club](/source/Warehouse_club) stores, [discount grocery stores](/source/Grocery_store), [dollar stores](/source/Dollar_store) and [variety stores](/source/Variety_store). ## Business model Some items are offered at a considerable discount over other retailers, whereas others are at the same price point. There are two ways discount stores make a profit: - Buying and selling vast amounts of goods at heavily discounted prices provides a small [profit margin](/source/Profit_margin) multiplied by the sales volume. - Pricing many items at prices that are higher than regular retailers. These goods are commonly bought by consumers who perceive them to be bargains based on the heavy discounts on other items in the store. In the case of fixed price-point retailers, this can be achieved by reducing the package size.[2][3] Discount stores with single price points buy products to fit those price points (while making a profit) that are: - [generic brands](/source/Generic_brand) or [private labels](/source/Private_label), often specially manufactured using cheaper materials and processes than usual.[2][3] - available through the [grey market](/source/Grey_market).[citation needed] - bought at a [closeout sale](/source/Closeout_(sale)), such as seasonal or promotional goods or bankruptcy stock.[citation needed] - sold in smaller unit sizes than elsewhere.[2][3] ## Types Discount stores can be categorized into several types, which vary by country; the following examples focus on the United States. ### Hypermarkets (superstores) Discount [superstores](/source/Superstore) such as [Walmart](/source/Walmart) or [Target](/source/Target_Corporation) sell general merchandise in a [big-box store](/source/Big-box_store); many have a full grocery selection and are thus [hypermarkets](/source/Hypermarket), though that term is not generally used in North America.[4] In the 1960s and 1970s the term "discount department store" was used, and chains such as [Kmart](/source/Kmart), [Zodys](/source/Zodys) and [TG&Y](/source/TG%26Y) billed themselves as such.[5] 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](/source/Ross_Stores), [Marshalls](/source/Marshalls), [TJ Maxx](/source/TJ_Maxx), and [Burlington](/source/Burlington_(department_store)). ### Category killers So-called [category killer](/source/Category_killer) stores, specialize in one type of merchandise and sell it in [big-box stores](/source/Big-box_store). Examples include: - Apparel: [Ross Dress for Less](/source/Ross_Dress_for_Less), [Marshalls](/source/Marshalls), [Burlington](/source/Burlington_(department_store)), etc. - Pet supplies: [Petco](/source/Petco), [PetSmart](/source/PetSmart) - Home furnishings and accessories: [Big Lots](/source/Big_Lots), [HomeGoods](/source/HomeGoods) - Office supplies: [Staples](/source/Staples_Inc.), [Office Depot](/source/Office_Depot), [OfficeMax](/source/OfficeMax) ### Warehouse clubs When membership is required, discount superstores are known as [warehouse clubs](/source/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](/source/Costco) and [Sam's Club](/source/Sam's_Club). ### Discount grocery store Major discount [grocery store](/source/Grocery_store) retail chains in the U.S. include [Aldi](/source/Aldi), [Lidl](/source/Lidl), [Save-A-Lot](/source/Save-A-Lot) and [Grocery Outlet](/source/Grocery_Outlet).[6] As of 2025, [Aldi](/source/Aldi) operates around 6,600 stores and [Lidl](/source/Lidl) operates around 12,600 stores worldwide.[7][8] ### Variety stores, dollar stores, five and dimes [Variety stores](/source/Variety_store) are stores which sell goods at a single or low fixed price point. In the United States, they are commonly known as dollar stores. 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](/source/F._W._Woolworth_Company), [J. J. Newberry](/source/J._J._Newberry) and [S. S. Kresge](/source/Kmart), 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](/source/Supermarket) or [department store](/source/Department_store) in the United States. [citation needed] 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](/source/Kmart), [Ames](/source/Ames_(department_store)), [Two Guys](/source/Two_Guys), [Gibson's Discount Center](/source/Gibson's_Discount_Center), [E. J. Korvette](/source/E._J._Korvette), [Mammoth Mart](/source/Mammoth_Mart), [Fisher's Big Wheel](/source/Fisher's_Big_Wheel), [Zayre](/source/Zayre), [Bradlees](/source/Bradlees), [Caldor](/source/Caldor), [Jamesway](/source/Jamesway), [Howard Brothers Discount Stores](/source/Howard_Brothers_Discount_Stores), [Kuhn's-Big K](/source/Kuhn's-Big_K) (sold to [Walmart](/source/Walmart) in 1981), [TG&Y](/source/TG%26Y)[citation needed] and [Woolco](/source/Woolco) (closed in 1983, part sold to Wal-Mart) among others.[9] [Walmart](/source/Walmart), [Kmart](/source/Kmart_(United_States)), and [Target](/source/Target_Corporation) all opened their first locations in 1962. Kmart was a venture of [S. S. Kresge Company](/source/S._S._Kresge_Company) that was a major operator of [dime stores](/source/Dime_stores). Other retail companies branched out into the discount store business around that time as adjuncts to their older store concepts. As examples, [Woolworth](/source/F._W._Woolworth_Company) opened a [Woolco](/source/Woolco) chain (also in 1962); [Montgomery Ward](/source/Montgomery_Ward) opened [Jefferson Ward](/source/Jefferson_Ward); Chicago-based [Jewel-Osco](/source/Jewel-Osco) launched [Turn Style](/source/Turn_Style); and Central Indiana-based [L. S. Ayres](/source/L._S._Ayres) created [Ayr-Way](/source/Ayr-Way). [J. C. Penney](/source/J._C._Penney) opened discount stores called Treasure Island or [The Treasury](/source/The_Treasury_(store)); Sheboygan, Wisconsin based [H. C. Prange Co.](/source/H._C._Prange_Co.) opened a chain of discount stores called [Prange Way](/source/Prange_Way), and Atlanta-based [Rich's](/source/Rich's_(department_store)) owned discount stores called [Richway](/source/Richway). 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 [S. S. Kresge](/source/S._S._Kresge) [five and dime](/source/Five_and_dime) store disappeared, while the [Dayton-Hudson Corporation](/source/Target_Corporation) eventually divested itself of its department store holdings and renamed itself Target Corporation).[10] In the United States, discount stores had 42% of the overall retail market share in 1987; in 2010, they had 87%.[11] Many of the major discounters now operate "[supercenters](/source/Hypermarket)", which adds a full-service grocery store to the traditional format. The [Meijer](/source/Meijer) 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](/source/Sears_Essentials), which is a combination of the Kmart and Sears formats, after the companies' merger as [Sears Holdings Corporation](/source/Sears_Holdings_Corporation). ### Canada [Woolworths](/source/F.W._Woolworth_Company) entered Canada in the 1920s, the stores were converted to the [Foot Locker](/source/Foot_Locker), [Champs Sports](/source/Champs_Sports) and other stores in 1994. [Kresge's](/source/Kmart), a competitor to Woolworth's entered the Canadian market in 1929. [Zellers](/source/Zellers) was founded in 1931, and was acquired by the [Hudson's Bay Company](/source/Hudson's_Bay_Company) in 1978. [Giant Tiger](/source/Giant_Tiger) opened its first store in [Ottawa](/source/Ottawa) in 1961, modeled on [Woolworths](/source/F.W._Woolworth_Company). [Winners](/source/Winners) was founded in 1982 in Toronto, and sells off-price brand clothing. [Costco](/source/Costco) entered Canada in 1986. In 1990, the American chain [Walmart](/source/Walmart) purchased the [Woolco](/source/Woolco) chain in Canada and converted the stores into Walmarts. [Dollarama](/source/Dollarama) was founded in Quebec in 1992. In 1998, [Zellers](/source/Zellers) bought out [Kmart](/source/Kmart) Canada, taking over its stores. In 2011, [Marshalls](/source/Marshalls), owned by the American [TJX Companies](/source/TJX_Companies), entered Canada, and [Zellers](/source/Zellers) sold most of its stores to [Target](/source/Target_Corporation). [Target Canada](/source/Target_Canada) filed for bankruptcy in 2015, selling its stores to [Walmart](/source/Walmart), [Lowe's](/source/Lowe's) and [Canadian Tire](/source/Canadian_Tire). In 2016, the [Hudson's Bay Company](/source/Hudson's_Bay_Company) started opening Saks Off 5th locations to sell off-price brands. American off-price chain [Nordstrom Rack](/source/Nordstrom_Rack) opened its first Canadian location in [Vaughan Mills](/source/Vaughan_Mills) in 2018. - Food Basics discount supermarket. - No frills discount supermarket. ## Multinationals - [Aldi](/source/Aldi) - [BİM](/source/Bim_(company)) - [Costco](/source/Costco) - [Daiso](/source/Daiso) - [Dia (supermarket chain)](/source/Dia_(supermarket_chain)) - [Lidl](/source/Lidl) - [Netto (store)](/source/Netto_(store)) - [Penny](/source/Penny_(supermarket)) - [TJX Companies](/source/TJX_Companies) - Usave - [Walmart](/source/Walmart) ## By country Outside the United States and Canada, the main discount store chains listed by country are as follows: ### Albania - Diambe Market ### Angola - Usave ### Argentina - [Dia](/source/Dia_(supermarket_chain)) ### Australia - [Aldi](/source/Aldi) - [Big W](/source/Big_W) owned by [Woolworths Group](/source/Woolworths_Group_(Australia)) - [Kmart](/source/Kmart_Australia), [Target](/source/Target_(Australia)) owned by [Wesfarmers](/source/Wesfarmers) - [Harris Scarfe](/source/Harris_Scarfe) owned by [Spotlight Group](/source/Spotlight_Group) - [The Reject Shop](/source/The_Reject_Shop) - Cheap as Chips, Dollars and Sense, Shiploads, Red Dot ### Austria - [Lidl](/source/Lidl) - [Hofer](/source/Aldi) - Penny ### Belgium - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) ### Bosnia and Herzegovina - [Lidl](/source/Lidl) ### Botswana - Usave ### Brazil - [Dia (supermarket chain)](/source/Dia_(supermarket_chain)) ### Bulgaria - [Lidl](/source/Lidl) - Kam Market ### Chile - Superbodega acuenta ### China - [Aldi](/source/Aldi) ### Colombia - Tiendas D1 - [ARA (Jerónimo Martins)](/source/Jer%C3%B3nimo_Martins) - Dollarcity - Ísimo, formerly Justo Y Bueno ### Costa Rica - Pali - Pequeno Mundo ### Croatia - [Eurospin](/source/Eurospin) - [Lidl](/source/Lidl) ### Cyprus - [Lidl](/source/Lidl) ### Czechia - [Lidl](/source/Lidl) ### Denmark - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) - [REMA 1000](/source/REMA_1000) ### Ecuador - Tiendas Tuti ### Egypt - BIM ### El Salvador - Dollar City ### Estonia - [Lidl](/source/Lidl) ### Eswatini - Usave - Boxer superstores ### Finland - [Lidl](/source/Lidl) - Halpa Halli - [Kärkkäinen](/source/K%C3%A4rkk%C3%A4inen_(chain_store)) - [Puuilo](/source/Puuilo) - [Tokmanni](/source/Tokmanni) ### Germany - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) - [Netto Marken-Discount](/source/Netto_Marken-Discount) - [Netto (store)](/source/Netto_(store)) - [Norma](/source/Norma_(supermarket)) - [Penny](/source/Penny_(supermarket)) ### Greece - [Lidl](/source/Lidl) - [Discount Markt](https://el.wikipedia.org/wiki/%CE%A3%CF%85%CE%B6%CE%AE%CF%84%CE%B7%CF%83%CE%B7%3ADiscount_Markt) ### Guatemala - Super del Barrio - Despensa Familiar - Dollar City - Econo Super ### Hungary - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) ### Ireland - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) ### Italy Italy has numerous discount supermarkets, including [Lidl](/source/Lidl) and [EuroSpin](/source/EuroSpin), the chains with the largest number of stores,[citation needed] and [Aldi](/source/Aldi), [Discount Dial](/source/Discount_Dial), [Dpiù](/source/Dpi%C3%B9), [MD Discount](/source/MD_Discount), [Penny](/source/Penny_(supermarket)), [Todis](/source/Todis) and [Tuodì](/source/Tuod%C3%AC). ### Japan Japan has numerous discount stores, including [Costco](/source/Costco), [Daiso](/source/Daiso), [Don Quijote (store)](/source/Don_Quijote_(store)) and The Price (owned by [Ito Yokado](/source/Ito_Yokado)). ### Kenya - Jaza Discount ### Latvia - [Lidl](/source/Lidl) ### Lesotho - Usave ### Lithuania - [Lidl](/source/Lidl) ### Luxembourg - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) ### Malaysia - Eco-shop - Mr Dollar ### Malta - [Eurospin](/source/Eurospin) - [Lidl](/source/Lidl) ### Malawi - Usave ### Mexico - Tiendas Neto - Tiendas 3B - Superissste - Waldo's - [Bodega Aurrera](/source/Bodega_Aurrera) - [PesoRama](/source/PesoRama) (JOi Dollar Plus stores) ### Morocco - BIM ### Mozambique - Usave ### Namibia - Usave ### Netherlands [Action](/source/Action_(store)), [Euroland](/source/Euroland_(store)), [Solow](/source/Solow_(store)), [Big Bazar](/source/Blokker_Holding) and [Zeeman](/source/Zeeman_(store)). In addition, the German discount supermarkets [Lidl](/source/Lidl) and [Aldi](/source/Aldi) both operate in the country. ### New Zealand - PAKnSAVE ### North Macedonia - KAM Market - Market Kipper - Stokomak - Lidi ### Norway - [REMA 1000](/source/REMA_1000) ### Peru - Tiendas Mass - DollarCity ### Philippines - [Dali Everyday Grocery](/source/Dali_Everyday_Grocery) - [O!Save](/source/O!Save) ### Poland Discount supermarkets cover about 30% of food sales in Poland. Main chains include [Biedronka](/source/Biedronka), [Lidl](/source/Lidl), [Netto](/source/Netto_(store)), and [Aldi](/source/Aldi). ### Portugal - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) - [Minipreço](/source/Minipre%C3%A7o) / [Dia (supermarket chain)](/source/Dia_(supermarket_chain)) - [Plus](/source/Plus_(supermarket)) sold to [Jerónimo Martins](/source/Jer%C3%B3nimo_Martins) ### Panama - El Machetazo ### Romania - [lidl](/source/Lidl) - Penny ### Russia - [365+](/source/Lenta_(retail)) - [Chizhik](/source/X5_Group) - Dobrocen - [Dixy](/source/Dixy) - [Fix Price](/source/Fix_Price) - [Moya Tsena](/source/Magnit) - Nizkotsen - [Pervy Vybor](/source/Magnit) - Pobeda - [Svetofor](/source/Svetofor) - Mayak (larger stores) #### Former - [Atac](/source/Atac) - Holdi - [Kopeyka](/source/Kopeyka_(supermarket)) ### Serbia - [Lidl](/source/Lidl) - [Svetofor](/source/Svetofor) - Super Discount - Leon Discount ### Slovakia - [Lidl](/source/Lidl) ### Slovenia - [Aldi](/source/Aldi) - [Eurospin](/source/Eurospin) - [Lidl](/source/Lidl) ### South Africa - Wellsave - Devland Hyper - Foodeez - Looters Slashed price warehouse - Usave - Boxer Superstores - Deals Superstores ### Spain - [Dia (supermarket chain)](/source/Dia_(supermarket_chain)) - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) - [Mere](/source/Svetofor) ### Sweden - [Biltema](/source/Biltema) - [DollarStore](/source/DollarStore) owned by [Tokmanni](/source/Tokmanni) - [Lidl](/source/Lidl) - [Rusta](/source/Rusta_(company)) - [ÖoB](/source/%C3%96oB) ### Switzerland - [Aldi](/source/Aldi) - [Lidl](/source/Lidl) - [Denner](/source/Denner) ### Turkey - [A101](/source/A101_(company)) - [BİM](/source/B%C4%B0M)[12] - [File](/source/File_(company)) owned by [BİM](/source/B%C4%B0M) - Hakmar Express owned by Hakmar - [Şok](/source/%C5%9Eok) owned by [Yıldız Holding](/source/Y%C4%B1ld%C4%B1z_Holding) ### Ukraine - [ATB](/source/ATB-Market) - [Aurora](/source/Aurora_(chain)) (Аврора) ### United Kingdom Further information: [List of discount shops in the United Kingdom](/source/List_of_discount_shops_in_the_United_Kingdom) - [Aldi](/source/Aldi) - [B & M](/source/B_%26_M) - [Farmfoods](/source/Farmfoods) - [Home Bargains](/source/Home_Bargains) - [Lidl](/source/Lidl) - [Poundland](/source/Poundland) - [Poundstretcher](/source/Poundstretcher) ### Venezuela - Tiendas Ovejita - Tiendas Daka ## See also - [Charity shop](/source/Charity_shop) - [Dollar store](/source/Dollar_store) ([five and dime](/source/Five_and_dime), [variety store](/source/Variety_store)) - [Everyday low price](/source/Everyday_low_price) - [Flea market](/source/Flea_market) - [Garage sale](/source/Garage_sale) - [Hypermarket](/source/Hypermarket) - [Jumble sale](/source/Jumble_sale) - [No frills](/source/No_frills) - [Types of retail outlets](/source/Retail#Types_of_retail_outlets) - [Warehouse club](/source/Warehouse_club) ## References 1. Charles Lamb (1 Jan 2011). [*Essentials of Marketing*](https://books.google.com/books?id=LcsIAAAAQBAJ&pg=PT465). Cengage Learning. p. 465. ISBN 978-1133171904. 1. Wallop, Harry (14 September 2012). ["How Poundland makes its millions"](https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9543609/How-Poundland-makes-its-millions.html). *[Daily Telegraph](/source/Daily_Telegraph)*. Retrieved 8 September 2013. 1. Hall-Davis, Amanda (21 April 2011). ["£1 stores can cost you more"](https://web.archive.org/web/20120415020155/http://uk.finance.yahoo.com/news/-1-stores-cost-yahoofinanceuk-1810927014.html). *[Yahoo Finance](/source/Yahoo_Finance)*. Archived from [the original](http://uk.finance.yahoo.com/news/-1-stores-cost-yahoofinanceuk-1810927014.html) on 15 April 2012. Retrieved 8 September 2013. 1. ["Walmart, Target, Kmart, Kohl's Lead 50 Years of Retail Revolution"](https://adage.com/article/news/walmart-target-kmart-kohl-s-lead-retail-revolution/233379). *adage.com*. March 19, 2012. 1. ["Kmart History | Kmart | About Us | Transformco"](https://transformco.com/about/kmart/kmart-history?/about/kmart/history.htm). *transformco.com* 1. ["What is Lidl? Why this discount grocery store is giving Aldi a run for its money"](https://www.today.com/food/what-lidl-discount-grocery-store-giving-aldi-run-its-money-t182688). *TODAY.com*. 18 June 2020. 1. ["Learn About ALDI Grocery Store’s History and Our Jobs and Careers"](https://careers.aldi.us/our-story). *careers.aldi.us*. Retrieved 2025-10-06. 1. ["Welcome to Lidl - Lidl International"](https://info.lidl/en). *info.lidl*. Retrieved 2025-10-06. 1. Arkansas, Encyclopedia of. ["Wal-Mart Stores, Inc."](http://www.encyclopediaofarkansas.net/encyclopedia/entry-detail.aspx?entryID=2135). *Encyclopedia of Arkansas*. The Central Arkansas Library System. Retrieved 8 February 2013. 1. ["Target History Timeline"](https://corporate.target.com/about/purpose-history/history-timeline). *corporate.target.com*. Retrieved 2025-10-06. 1. "America's top stores." '*Consumer Reports*, June 2010, p. 17. 1. ["Bim A.Ş. > Welcome..."](http://english.bim.com.tr/Category/108/about-us.aspx). *english.bim.com.tr*. Retrieved 2017-08-21. ## Further reading - Nelson, Walter Henry, *The Great Discount Delusion*, New York: D. McKay, 1965. --- Adapted from the Wikipedia article [Discount store](https://en.wikipedia.org/wiki/Discount_store) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Discount_store?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.