The largest retailer in the world is Walmart, which doesn't really use discounts except to clear inventory, and advertises "always low prices".
American consumerism does love low prices. The problem is that if you play that game, you compete with Walmart and lose.
Their data mining lets them know exactly what to price Household Paper Products in your zip code so that they're always lower than the surrounding competition while not leaving money on the table. They're not targeting the lowest possible price system-wide.
Walmarts game is a bit different and they can pull it off because of their unique positioning, size and buying power. They also get you to buy things you don't need by their merchandizing. (Similar to how you go into a supermarket for one thing but end up with 10 other things.)
Interesting... how do they do that? I've always found Walmart's retail experience to be about one step above a warehouse club. I tend to go in for what I want and if it's in stock (often times not the case) I buy it and GTF out.