General merchandise

General Merchandise

General merchandise stores include department stores, discount department stores, ‘super stores', hypermarkets, warehouse club stores, and dollar stores (stores which sell many small items cheaply).

Department stores sell a variety of goods, including apparel, furniture, appliances, home furnishings, cosmetics, jewelry, paint and hardware, electronics, and sporting goods. They also increasingly offer services such as optical, photography, and pharmacy.

Discount department stores usually keep costs and prices low with fewer salespeople and cashiers.

Warehouse club stores and super centers tend to sell bulk items and a variety of products and services at low prices. By providing large but minimally-appointed warehouse locations, requiring membership fees from their customers, and buying very large quantities of goods, warehouse club stores can keep prices extremely low. Service is also usually very limited, as these stores encourage self-service.

Challenges

General merchandise retailers face challenges from large chains. As well, smaller retailers are seen as providing better, more personalized service, even if their selections are limited. Niche stores may be patronized more by customers who want a store that focuses entirely on the product they're looking for – as opposed to a store that sells anything and everything.

For the majority of purchases, on-line ecommerce will not affect in-store sales, because of high transaction costs. On the other hand, products such as books and electronics will continue to sell well online.

The location of general merchandise retailing may change itself. Oversaturation in suburban markets may lead to inner-city expansion. Convenience stores may expand their product lines and move closer to living and working areas.

Lastly, retailers will face some challenges from local-based retail such as farmers markets, arts markets, and neighborhood-based markets for customers seeking authentic experiences.