Southeast leads in number of discount stores - Discount Industry Annual Report. Part II: Merchandising and Productivity Analysis

Discount Store News, August 5, 1991

Southeast Leads In Number Of Discount Stores

The Southeastern U.S. leads other regions in number of discount stores and has the largest concentration of Sears and Wards.

The Southeastern United States had the greatest concentration of stores in the discount industry last year with 1,955 units. It also is the region with the most Sears and Montgomery Ward stores, 221.

Sears and Montgomery Ward, historically partnered with JCPenney as the "Big Three" general merchandisers, have transformed themselves into name brand discounters. Accordingly, Discount Store News now lists both Sears and Montgomery Ward on Discount Store News' Top 150 list of discount retailers. The two chains, which have been reclassified as Specialty Mass Retailers (SMR), contributed 1,204 stores to the United States retail landscape, their heaviest concentration being in the Southeast, consisting of eight states and Washington, D.C.

By state, California has the most specialty mass retail outlets, 124, and Alaska, the least, a lone Sears outlet. Sears also is the dominant discount industry leader by unit count in both Hawaii and Washington, D.C.

Separately, California has the most warehouse clubs, 77, Texas, the most discount department stores, 526, and New York the most catalog showrooms, 121.

Overall, there were 10,140 full-line discount retail outlets in operation in 1990 including 7,340 discount department stores, 1,204 specialty mass retailer units, 1,163 catalog showrooms, and 433 warehouse clubs.

Despite the troubles many catalogers are undergoing now, in 1990 the number of showrooms increased by 143 units, mostly the result of increases by the strongest operators. The scenario should be substantially altered on next year's census to reflect the great number of 1991 store closings.

The warehouse club sector recorded a fairly prosperous 1990 with respect to overall store count. The country absorbed an additional 59 clubs during 1990, despite the demise of such chain names as Makro, The Wholesale Club as well as Price Savers.

Kmart Dominates Six Areas

By region, Kmart dominated six areas of the country (including Puerto Rico) with its store base, down one from 1989, but was second fiddle in three regions, up one from the year-earlier census.

Wal-Mart, with its ever-growing base of stores, dominated three regions of the country, up one region--North West Central--and was second in three regions, down one--North West Central--from the 1989 census.

Ames, with its declining store base, was the dominant retailer in one region, New England, and was second in the Mid-Atlantic, the same results as in last year's census.