WikiWealth

Some retailers don't have discount stores or have a low number of discount stores. These types of stores can be beneficial for consumers who want to purchase clothing for a lower price. Discount stores can increase the consumer base by targeting consumers who are less well off. It can increase sales from consumers who would not otherwise visit a full priced store, because they are fearful at the higher prices of the merchandise.

Discount stores can help a company as long as the extra sales and profits from those stores makes up for any loss of value from existing stores. …