On-line commerce is more of a complimentary business of traditional retailers rather than an entirely new retail concept. However, this is no guarantee. New retail companies are competing in a saturated and slow growing U.S. retail market. The general merchandise retailing encompasses firms that sell a wide variety and scrambled assortment of hard and soft goods. More consumers are shopping at discount and mass merchandising stores to save money.
Many consumers see the same or very similar brands at discount stores they see at department stores.
The growth of traditional U.S. retailing should not be robust due to a dearth of economically favorable store locations. Many companies have responded by using their capital for other purposes such as reducing long term debt and repurchasing their common stock. Its important to note that the expense of opening a new store is prohibitive and risky where the return cannot be measured accurately. Some companies can continue to grow their store count where they have a very specific demographic group to serve and locations can be developed in sparse locations at minimal costs. Dollar General and Family Dollar Stores for instance, continue to expand their store counts.