Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?
A) Department stores
B) Traditional specialty retailers
C) Warehouse showrooms
D) Direct marketers
E) Discount stores

Question

Quizplus · Accepted Answer

Discount stores, such as Walmart or Target, generally operate on a high-volume, low-margin model. They accept lower margins than traditional retailers by purchasing large quantities of products directly from manufacturers and passing on the savings to consumers through lower prices. By offering attractive deals, they hope to increase their sales volume and make up for the lower profit margins with higher sales.

Which Type of Retailer Generally Accepts Lower Margins Than Traditional