Mass merchandising is a method of RETAILING is characterized by high-volume, fast-turnover selling of staple goods for less than conventional prices. Establishments that satisfy these selling criteria are called mass merchandisers, discount department stores, discount variety stores, general merchandise discount stores, full-line discounters, or discount “houses.” Ordinarily mass merchandisers are organized in a departmentalized format, present their merchandise in massive displays, provide minimal customer assistance within each department, and provide a centralized checkout service. Their structure is typically single-level and between 10,000 and 100,000 square feet. The “Big Three” mass merchandising chains are Wal-Mart, Kmart, and Target. Mass merchandising emphasizes PRODUCTs whose markets are not highly segmented. Typical merchandise that is sold through mass merchandisers includes apparel, hardware, housewares, auto supplies, small appliances, toiletries, sporting goods, toys, pharmaceuticals, and electronics, as well as any product line that is in popular demand. The discount-store industry began in the early 1900s and started to pick-up after World War II due to an increasing DEMAND for new consumer goods such as record players and television sets. In the 1960s, industry leaders as well as a standard store format were established and sales were around $2 billion. By the 1980s, Wal-Mart, Kmart, and Target dominated the industry and by the 1990s the industry surpassed $200 billion in sales. The emergence of the mass-merchandising industry, which has relied heavily on technological advances to improve productivity and cost cutting, has had a huge impact on the financial health of full-price retailers. This trend has established a competitive environment between traditional department stores and discount retailers, resulting in a battle for market share. The August 1999 Chain Store Age State of the Industry Supplement sums up this scenario, noting that “discount stores continue to be in the catbird seat in the retail industry. As long as they continue to provide customers with value and quality merchandise, they will be hard to beat.” Kirsten Gaudes