Discounters Prove Industry Wrong
over story that evokes today's headlines, retailers and industry association leaders discussed the anticipated end of discount retailers. By 1971 the discount trend was not new and industry sources were predicting that it had run its course. Retailers were told by the retiring president of what was then the largest grocers' association in the country that by offering superior customer service and quality vs. low prices they could ride out the remainder of the storm.
Fast forward to 2002 and that prediction has been proven wrong. Retailers now run their businesses in a field overshadowed at most turns by a Wal-Mart operating model. Discount retailers have increased their share of consumer dollars and their dominance in the food retailing field. The number of large warehouses, superstores and discount chains has increased, as has the use of everyday low pricing across the board. The advice of those 1971 panel members who pointed to customer service and quality as effective methods of competition against stores offering deep discounts could have been offered at any trade show this year. While the strategy for competition remains the same, it is unlikely any current predictions for the end of discounting will surface this year.
