I wonder how could retail stores lower their price as 80% less and still makes money. Well, as far as I can remember since I worked in Retail, this is part of the marketing strategy. All retailers set aside huge budget for marketing/advertising. So, offering a discounts small or huge is part of their marketing campaign to lure people to shop on their store. They want to attract and expand their customers especially those who don't shop on them. Furthermore, this is to save them inventory costs. They want toget rid of those overstocked merchandise, slow-moving items and non-saleable. This caused the store to have more rooms for their new inventory on saleable items. Sales Discounts help the retailers to save on inventory cost at the same time customers saves money on the things they buy.