General Merchandise Segment
Essay title: General Merchandise Segment
In the United States there were 30,795 stores that comprised the general merchandise segment of the retail sector in the early 2000s. The miscellaneous general merchandise stores industry also includes discount/closeout merchandisers like Dollar General Corp., with 2004 sales of $6.9 billion and 57,800 employees, and Big Lots Inc. with 2004 sales of $4.2 billion and 47,249 employees. A handful of major players dominate this retail industry segment in the United States. Arkansas-based retail giant Wal-Mart Stores, Inc. topped the list in fiscal year 2004, with sales of $256.3 billion and 1.4 million employees. Wal-Mart operates some 1,500 discount stores in the United States. (Gale 2004). Wal-Mart Stores dominates the retail market with their discount stores and warehouse clubs.
Due to the continued market dominance of discount retailers, superstores, and warehouse clubs, the future growth of catalog showrooms, which also are a part of this retail segment, appears to be flat. Customers are frequenting superstores on a fairly regular basis and those stores want to stay competitive need to explore ways to improve customer service and use technology effectively in their store’s operation. (Gale 2004). Wal-Mart Stores is considered as a general merchandise store that offers the customers different products at discount prices. Wal-Mart’s pricing strategies have a dominating effect in the retail industry because they control the market with their discounted prices that they have that are below their competitors prices.