Penetration Pricing

Have you ever seen a Marketer come out with a low price, on a new line of item that they where trying to introduce into a already established market? Will then you have seen "Penetration Pricing"; it is a know practice of a Retailer cutting the cost to get their item into the Market, they intend to make the profit from mass sales. Walmart does this in some case's; but the real winners in this game are:

Dollar Store's like Dollar General, Family Dollar, and Dollar Tree. These types of stores are the fastest growing retailers in America opening 1500 stores a year. What makes these stores different from most is that they are right in your neighborhood; they are small and there fore only need four employee's to operate with (low Overhead), and their sales strategy is to sell lots at low prices.

So maybe with Penetration Pricing there is a answer for the Giant Mega Stores like Walmart, Target, and the such. Who says that the neighborhood stores are gone, they have just Franchised and joined up under Penetration Pricing to curve out the own niche in the retail world.