A term often used to describe a retail establishment which offers goods. usually consumer durable goods, e.g. refrigerators, radios, television sets, etc., at prices well below those normally obtainable in the High Street. Similar to a supermarket in operation, it is usually located in an out-of-town or temporary warehouse where rent and rates are low and where the scale of operations is very large. This scale enables the owners to take advantage of bulk buying at high discounts and the emphasis is on fast turnover of expensive goods - taking low profit per item sold but. due to the quantity of sales and low handUng charges, high total profit on goods turned over. Another factor which contributes to profitability is the practice of concentrating on cash sales and thereby avoiding the cost of setting up credit control systems or hire purchase arrangements. Needless to say, such stores are not popular with the small trader.
|Reference: The Penguin Business Dictionary, 3rd edt.|