Discount stores are those retail stores that offer services or sell its products at prices that are lower than the typical market value. Such stores may offer an array of goods with its sole focus on price rather than the services it is supposed to offer its customers and employees. Some of the discount stores deals with one product or service such as Toys “R” Us. Some of the popular discount superstores include Wal-Mart, Aldi, Kmart, Five Below, Meijer, Shopko, Roses and Target. The retail stores cover the entire US and others operate in many countries worldwide (Independent). The gradual growth of these stores has been mired with controversies. One of these controversies is how these discount superstores affect the people of the United States. The main question that has been projected is whether these discount stores are good or bad for the American people such as the customer, employees as well as the people in the nearby vicinity.
The main discount store that can be used for this case is Wal-Mart. Wal-Mart as a discount store operates a chain of discount stores in many states. The company has come under scrutiny recently due to its strict cost policy. Based on Wal-Mart’s model, discount stores are good for the American people. For example, the store offers products at a relatively cheap price (Forbes). Many companies have been known to exploit customers on a daily basis. One method of exploiting customers is through price discrimination where people from certain areas are charged more than individuals from another place. The growth of discount stores has ensured that such companies cease to exist in the market. Wal-Mart considers the customers interest over that of these small stores which exploit different customers.
Wal-Mart has also ensured that manufacturing companies do not take advantage of small retailers. Discount stores have forced manufacturers to push their cost down. Initially, manufacturing companies had an upper hand when it came to cost. The retail stores depended on the price they bought goods with to set market prices. Most of the times, such price exploited the people. Discount stores such as Wal-Mart have changed this situation and have become the price setter. Many companies have fallen due to aggressiveness of Wal-Mart to protect its customers. Additional, retail stores that offered products at a higher price have followed suit by offering customer friendly prices. Discount stores can therefore be seen as a blessing to the people rather than the devilish image that many people have come to paint the store.
Food which is one of the most important aspects in a human beings life is one of the cheapest commodities at Wal-Mart. The prices of food stuff at Wal-Mart’s stores are unrivalled. Wal-Mart has therefore saved people or shielded them form high prices. Food takes a big share of a person’s income. By selling it at a cheap price, Wal-Mart has enabled people to save. It is undoubtedly clear how much people could have racked up in cost if the other pricy grocery shops were the only stores offering such products (Independent). The saved money has also helped improve the living standards of the people thereby aiding the economy of the country. Apart from saving cost for the customers, Wal-Mart has also created job opportunities for thousands of Americans. In Mexico for example, it is the biggest foreign employer. Many Americans have benefitted from the company. Recently, it increased the wages of the employees. The employees are paid above minimum wage which for some companies it is a lot trickier to get such an amount.
Despite the positive elements of having a Wal-Mart store near you, the company also has its shortcomings. The company has led to many retail stores collapsing (Economyincrisis). Such a retail store was probably the sole source of income. As such, it has rendered such a person jobless and probably spelled doom for the family members as well. This is the biggest concern regarding Wal-Mart and other discount stores such as target. Additionally, the company does not give its employees enough benefits such as medical cover (Economyincrisis). This is one of the biggest problem at Wal-Mart. Many companies offer different benefits to its employees. Wal-Mart with its strict policy has managed to squeeze this out of the employees. The company needs to improve the customer’s welfare to be considered one of the revolutionary companies in the United States.
In conclusion, Discount stores have more benefits compared to the problem it causes for the people. Wal-Mart for example has helped people reduce spending especially on food. The company has made some save money instead of being squeezed by retailers. Majority of the masses consider discount stores such as Wal-Mart to have a negative effect on the people especially the economy of that area. Discount stores however have helped to control manufacturing companies that drove prices high. Despite the few shortcomings associated with discount stores such as its suffocation of retail stores, companies such as Wal-Mart will continue being a revelation in helping consumers at the expense of manufacturers and greedy retailers.
