Discount retailing still has strong growth potential

There is still plenty of growth potential in the discount retailing market, as an article in the Independent today illustrates.

99p Stores is a discount retailer where everything is priced at (surprise, surprise) 99p. However, the entrepreneurs behind the business want to be able to sell a wider product range which is not constrained by the 99p price tag (eg garden furniture). So they have decided to launch a new retail format, named Family Bargains.

The article is well worth printing out as a lesson starter. Ask students to highlight relevant business studies terms and then ask them to consider who Family Bargains is aimed at and whether the format is likely to prove a success. There are some revenue and profit numbers in there too, so a chance to do some basic ratio analysis too