Question

________ are off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise.

Option 1: Department Stores
Option 2: Discount Stores
Option 3: Specialty Stores
Option 4: Boutique Stores

Answer 1

Discount Stores are the off-price retailers that offer ultra-low prices and surprise deals on branded merchandise in large, no-frills facilities. The type of off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise are known as Discount Stores (Option 2).

Step-by-step explanation:

The type of off-price retailers that operate in huge facilities offering few frills but ultra-low prices and surprise deals on selected branded merchandise are known as Discount Stores (Option 2). Unlike Department Stores that feature fixed prices and a wide variety of goods, or Specialty Stores that focus on a specific category of products, discount stores provide a simplified shopping experience with significant savings.

These retail outlets have a cost structure that allows them to offer competitive pricing, much like how large online retailers such as Amazon achieve low average costs through economies of scale in their warehouse operations. Discount stores typically procure merchandise at lower prices due to overstock, discontinued lines, or bulk purchases, passing these savings on to the consumers.