Impacts of large discount stores on small US towns: reasons for shopping and retailer strategies

Abstract

Five small Minnesota towns are examined one year after the arrival of six large discount stores. Three hundred consumers were surveyed to determine reasons for store choice and how the new discounters affected shopping. Findings indicate that consumers shop at discounters for low prices and large variety and specialty stores for the unique items they cannot find elsewhere. They shop at the new discounters more and the existing stores less. Specialty stores need to differentiate themselves from discounters by increasing product assortments in the key categories carried, upgrading quality with branded merchandise not available to discounters, and maintaining good in‐stock positions.