1992 is 'The Year of the Discounter.' - Publisher's View - Column

Discount Store News, Dec 9, 1991 by John Failla

In 30 days you'll be reading in the business press about how once again the Grinch stole Christmas for most American retailers. As in the past several years, however, discount retailers will be singled out as the sole bright spot on retailing's horizon.

During the 1980s and now into the '90s, the discount retailers' formula of selection, convenience, national brands and "value" has eaten into the market share of once dominant department stores and "the Big 3"--Sears, JCPenney and Monthgomery Ward. With supermarkets trying to figure out how to counter the twin threats of membership warehouse clubs and hybrid formats like WalMart's SuperCenter, and while drug chains ponder how to maintain customer traffic as consumers can have prescriptions filled at many different outlets, it's clear that the dominance of discount retailers will only grow.

It's interesting to see such strength and vitality in our industry as we approach the 30th anniversary of discount retailing in 1992. An indicator of the momentum being experienced by discount retailers is the recent phenomenal growth of retail memberships in the International Mass Retail Association. Under the direction of then acting and now president Robert Verdisco, IMRA has added 18 new retail members to its ranks, that represent more than $21 billion dollars in total retail sales. What's most interesting is that it's coming from all segments of discount retailing--specialty discounters, membership warehouse clubs, and traditional discount department stores.

IMRA's recent successful Loss Prevention, Financial and Store Planning conferences--which featured record levels of retailer attendence--further illustrate the vitality of both the industry and the association.

The most exciting days for this industry are still ahead. I see a day in the not too distant future when discount retailing is not only the dominant genre of retailing in the United States but throughout the world. During the '90s, retailers who focus on delivering value to the consumer will emerge as the dominant retailers in their respective economies.

The pioneering spirit that launched this industry 30 years ago continues to exist today among both retailers and suppliers. Consider the fact that DSN's fax machines are going non-stop with inquiries from more than 80 companies about our recently announced Mexican Retailing Study Tour co-sponsored by Deloitte & Touche.

As Discount Store News celebrates its 30th anniversary in 1992, we renew our pledge to be the most valuable and useful publication serving both retailers and suppliers in the world's largest general merchandising market--discount retailing in the United States.

Best wishes from all of us at DSN for good health and continued success in 1992--the Year of the Discounter.