First Research US Industry Profile

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Discount Department Stores
SIC Codes: 5311
NAICS Codes: 452210
Last Quarterly Update: 3/25/2019
Companies in this industry operate physical retail establishments that sell a wide variety of merchandise, including apparel, household furnishings, and personal care products. Major companies include Kmart, Target, and Walmart (all based in the US), as well as Carrefour and Groupe Auchan (France), Daiso Japan, Lojas Americanas (Brazil), and METRO AG (Germany).
Discount department store sales are strongest in developed parts of the world, including Europe, Japan, and North America. Top emerging markets for discount department stores are China, India, and other regions where middle-class populations are rising.
The US discount department store industry includes about 4,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $100 billion.
Unlike most traditional department stores, discount department stores typically have a central checkout at the front of the store. Discount department stores generally do not sell fresh, perishable foods, unlike supercenters and warehouse clubs. Some discount retailers, such as Target and Walmart, also operate supercenters or warehouse clubs, which are covered in a separate industry profile.
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 enjoy advantages in purchasing, distribution, and marketing. The US industry is highly concentrated: the eight largest companies account for nearly 100% of industry revenue.
Discount department stores carry a wide range of merchandise and compete with a diverse set of retailers, including department, drug, grocery, off-price, outlet, and specialty stores; warehouse clubs; and internet and catalog retailers. As consumers migrate to online purchasing, e-commerce has become a battleground for discount department stores and other retailers. Walmart Stores, which in 2016 acquired online retailer Jet.com for $3.3 billion (its largest-ever purchase), has seen its sales and profits jump since the takeover and appears to be holding its own against Amazon. The deal underscores the importance of e-commerce to Walmart's sales growth and the competitive threat Amazon.com poses to Walmart and the broader retail industry.
To better compete with Amazon and their brick-and-mortar rivals, discount department stores are connecting their physical and online operations to create new services such as next-day (and even same-day) delivery of online orders, as well as offering in-store pickup for online orders.
Products, Operations & Technology
Major products sold include apparel (about 25% of sales); personal care products (15%); and groceries (10%). Apparel includes women's, men's, and children's. ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

12/17/2018
09/17/2018
06/18/2018
03/19/2018
12/18/2017
09/11/2017
05/29/2017
02/27/2017
11/21/2016
08/22/2016
05/23/2016
02/22/2016
11/16/2015
08/17/2015
05/25/2015
02/23/2015
11/24/2014
09/01/2014
06/09/2014
03/17/2014
12/16/2013
09/23/2013
07/01/2013
04/08/2013
01/14/2013
10/08/2012
07/23/2012
04/30/2012
01/30/2012
10/17/2011
07/18/2011
04/04/2011
12/20/2010
09/27/2010
06/21/2010
03/22/2010