Exploring the Global Discount Retail Market: 5.35% Growth Trend, Projected to Reach $830 Billion!

The global discount retail market is currently experiencing robust growth, with projections estimating it to reach $830 billion by 2030, maintaining an annual compound growth rate of 5.35%. This trend is particularly prominent in the European and American markets, showcasing the strong momentum and growth potential of the discount retail sector in the global economy. Especially in large economies like the United States, the rapid development of discount retail is particularly noteworthy.


While discount retailers each have unique business models, their core concepts are generally consistent, relying mainly on scaled purchasing and efficient supply chain management to minimize costs. They enhance profitability by continuously updating product categories and expanding sales channels. Take Daiso from Japan, for example; its 100-yen store model has achieved significant success globally. Daiso, through self-developed products and innovative capabilities, has achieved high gross profit margins and successfully opened 5,247 stores worldwide. Meanwhile, T.J. Maxx has achieved steady performance growth for 34 consecutive years through its private label and clearance sales strategies. Dollar Tree in the United States, focusing on serving low-income groups through its dollar store model, has attracted a large customer base with convenient store locations and low-price strategies.


In the discount retail industry, hard discount and soft discount are two main operating strategies. Hard discount achieves low-price sales by optimizing the supply chain and reducing intermediary links, while soft discount mainly relies on selling closeouts, seasonal, or clearance goods. With the industry's development, the boundaries between these two models have become increasingly blurred, with many discount retailers integrating characteristics of both to form more flexible and diverse operating models.


Costco, as a representative of hard discount retail, has achieved tremendous success in the U.S. market through its unique warehouse membership store model. Costco, through its membership system, streamlined product categories, and private label strategies, has achieved economies of scale and eliminated brand premiums, providing consumers with high-value products. Costco's business model emphasizes efficient supply chain management and member services, which have enabled it to maintain strong competitiveness and sustained growth momentum in the U.S. market.


Despite challenges such as supply chain optimization, cost control, and e-commerce channel integration, the U.S. discount retail industry is responding to market changes through continuous innovation and efficiency optimization. With consumers' continued pursuit of value for money, the discount retail industry is expected to continue expanding its market share in the coming years, becoming an important force in the retail market. These success stories provide valuable experience for the industry, demonstrating how discount retailers adapt and innovate in a constantly changing market environment to maintain their market position and attractiveness.