Introduction The concept of supplying a variety of goods at low prices has been around for over a century. Five and dimes stores were first introduced in the late 1800s. Their deployment of this marketing approach has evolved greatly over the years, but with the same core concept in mind; high product variety and low prices. Stores like K-Mart can be recognized as a pioneer for this industry, with their beginning dating back to 1897. The concept of the general store and convenient store merged together producing what we now know as the mass merchandising industry. Mass merchandising can be defined as a method of retail whose characteristics include the fast-turnover sale of staple products for prices that are less than normal in high volumes. The staple products commonly found within the industry range from appliances and electronics to groceries and apparel. Common Characteristics Our focus included three top mass merchandisers, Wal-Mart, K-Mart and Target. As stated in the article, “Market Structure and Competition in the Retail Discount Industry,” “Wal-Mart is dominant in the industry, Target serves more of a niche role, and K-Mart struggles to find its footing.” These major mass merchandising stores range anywhere on average from 94,000 square feet to 126,000 square feet in size. Wal-Mart's store on average covers about 102,000 square feet, Target averaging 126,000 square feet and K-Mart averaging around 94,000 square feet. The store layout separates each area of the store by product type. For example: clothing, pharmaceuticals, cleaning, kitchen, electronics, movies, bedding, hardware, sporting goods, jewelry and some food products. Each mass merchandiser offers a variety of products. According to Wal-Mart’s 2010 Annual Report, “The retail department stores sell a variety of mostly non-grocery products, though emphasis has now shifted towards supercenters, which include more grocery items.” Target is similar in that they include general merchandise and select grocery products. They also offer other amenities such as photo processing services, a pharmacy, a Food Avenue restaurant, and often a Starbucks according to Target.com. K-Mart is similar to Wal-Mart and Target with what products they offer. These stores aim to provide as much convenience as possible to their customers, which is part of the reason the industry is seeing an increase in services offered. There are a few regulations that are specific to different mass merchandisers. Some states require that there be a minimum selling price for specific goods. Ibis states that some of these goods can include tobacco products, alcoholic beverages, and gasoline. These regulations vary by state and is applied across the entire industry. According to Marketline, Wal-Mart can be attributed to five main strategies, “Advanced technology, company cost control, low prices, expanding into new retail sectors, and international expansion.” Wal-Mart has 65% of the market share and this is mainly due to their wide array of products with such low costs. Marketline also explains that mass merchandisers are gaining more business over grocery retailers when it comes to “key center-store product categories such as paper products and laundry detergents.” Since most companies offer similar products, customer loyalty is important when it comes to mass merchandising. Stores are located in a close proximity to customers’ homes, provide convenient hours, accessible parking, and offer just about any product the consumer needs. More and more mass merchandisers are starting to offer a grocery section with perishable items as well as other services to encourage their loyal customers to make their shopping trip a one-stop shop. The target market for mass merchandisers overall is similar in that all consumers want the convenience of going to one store to get most household items. The customers they attract are those looking for common, affordable items. While stores like Target attempt to appeal to the more “style conscious” consumer, as a whole customers are not expecting customized or otherwise specially-enhanced products. According to the article, “Market Structure and Competition in the Retail Discount Industry” by Ting Zhu, Vishal Singh, and Mark D. Manusza, “Kmart and Wal-Mart prefer similar markets, but Wal-Mart’s competitive position is dominant enough to prevent Kmart’s operation in otherwise attractive markets.” Walmart is less concerned with incomes in a market but focuses more on markets with lower retail wages and households with more children and vehicles. Target is opposite in this sense. Target and Kmart both try and find markets where Wal-Mart would be less successful to operate. Many mass merchandisers are greatly involved within communities. Wal-Mart has a state giving program that provides grants to 501(c)(3) organizations. These grants range anywhere from $25,000 to $250,000. According to Walmart.com, t