What type of retailer is a superstore that dominates a market with narrow but deep assortment of goods?

We’ve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data.

You can read the details below. By accepting, you agree to the updated privacy policy.

Thank you!

View updated privacy policy

We've encountered a problem, please try again.

Marketing 105 A2Q1. In contrast to department stores, specialty stores carry a narrow, but deep assortment of products and tailor strategy towardsselective market segments.a. trueb. false

Q2. Off-price chains typically purchase their merchandise through traditional wholesale channels.

Get answer to your question and much more

Q3. Which of these is a successful European store type that hasnotdone well in the United States?

Get answer to your question and much more

Q4. Which of the following retail institutions doesnotfit into the definition of a supermarket?

Get answer to your question and much more

Q5. Manufacturers may prefer to sell their closeouts, canceled orders, and out-of-season merchandise to factory outlets ratherthan off-price chains because _____.a. off-price chains can generate high profit marginsb. off-price chains have too much powerc. factory outlets generate low short-term cash flowd. greater control results in less disturbance to traditional channels

Q6. The competitive advantage of a category killer is based on _____.

Get answer to your question and much more

1. What is a "narrow but deep" assortment of merchandise?

A retail store typically has a narrow but deep assortment of merchandise. This means that the store does not carry a large variety of items, but does carry a large quantity of each item. This allows the store to offer its customers a wide selection of products, while still being able to keep its shelves stocked.

2. Why do retailers offer this type of assortment?

Retailers offer a wide variety of products to appeal to a wide range of customers. By offering a wide assortment of products, retailers are able to attract more customers and generate more sales.

3. What are the benefits of a narrow but deep assortment of merchandise?

There are many benefits to having a narrow but deep assortment of merchandise in a retail setting. First, it allows the retailer to focus on a specific target market and cater to their needs more effectively. Second, it helps to build brand loyalty among customers by providing them with a consistent shopping experience. Third, it can lead to increased sales and profits due to the increased customer satisfaction and loyalty. Finally, it can help to create a more efficient and streamlined operation for the retailer.

4. What are the drawbacks of a narrow but deep assortment of merchandise?

The drawbacks of a narrow but deep assortment of merchandise are that it can be difficult to find what you are looking for, and that you may have to settle for something that is not exactly what you wanted. Additionally, a deep assortment can be overwhelming and make it difficult to decide what to buy.

5. Which retailers offer a narrow but deep assortment of merchandise?

There are many different types of retailers, but some offer a narrower but deeper assortment of merchandise than others. These retailers are often able to provide a more specialized selection of products, which can be appealing to consumers who are looking for a particular item. Some examples of retailers that offer a narrow but deep assortment of merchandise include specialty stores, boutiques, and online retailers.

What Is a Category Killer?

A category killer is a large retail chain superstore that dominates its product category and puts less productive and highly specialized merchants out of business. The original category killers proliferated during the 1980s and 1990s and generally excelled until the arrival of e-commerce, which paved the way for a new breed of online category killers that not only focus on price but also on convenience and after-sales support.

Key Takeaways

• Category killers typically dominate a product category by offering low prices and wide product selection.
• Category killers proliferated during the 1980s and 1990s but fell by the wayside as online retailers took center stage in the subsequent decade.
• Toys R Us, a pioneer among category killers, filed for bankruptcy in 2017.
• A new breed of online category killers, which focus on convenience and after-sales support in addition to price, has emerged in recent years.

Understanding a Category Killer

Category killers mainly attain their massive competitive advantage by having a bigger and deeper selection of merchandise as compared to small and independent stores. Those merchandise numbers enable category killers to become cost-efficient and sell their products at prices so low that other stores are unable to compete with them.

An example of a category killer superstore is Home Depot, which has significantly more square footage and inventory than a local hardware store and offers more choice in product variety. Charlie Lazarus, the founder of Toys R Us, is generally credited with inventing the concept of a category killer. Bookseller Barnes & Noble, electronics retailer Best Buy and home products and furnishings store Bed Bath & Beyond are other examples of this type of superstore.

While they may seem insurmountable, category killers are not invincible. This can especially be the case if they are mismanaged or fail to keep up with the times. Toys R Us, which pioneered the concept and filed for bankruptcy in September 2017, is an example.

History of Category Killers

While Toys R Us was founded in 1948, the heyday of category killers was during the 1980s and 1990s. That was when category killers proliferated across the country.

In 1997, Borders, a bookstore that is now no longer operational, Barnes & Noble, and Home Depot opened new stores every nine, four or five, and two to three days, respectively.

Within the next decade, however, the fortunes of these category killers unraveled. Some declared bankruptcies, others shut down, and others began reporting steep losses.

Several factors were responsible for their gloomy condition. One of them was the continued dominance of Walmart as a vast national discount retailer. The Arkansas-based behemoth not only ate into the market share of independent stores but also that of retailers like Toys R Us.

Another notable challenge was the rise of e-commerce companies like Amazon. These companies offered low prices, and the convenience of one-stop shopping from the comfort of the consumer's home, destroying the high-expense economics of many big-box retailers.

New Category Killers

Some big-box category killers may yet be able to defend their category economics, if they can create a compelling shopping experience. To do that, they will need to combine instant gratification, personalized selling, unique assortments, and a sensory showroom experience that borders on entertainment. They may also need to downsize their stores to maintain maximum flexibility, as well as combining clicks with their bricks, as Walmart is now doing.

A new type of category killer has also emerged online. Such sites typically specialize in offering a specific product category at different price points. For example, Warby Parker specializes in retailing prescription glasses and sunglasses. Casper, another online startup, specializes in selling different kinds of mattresses, while Harry's and Dollar Shave Club offer shaving products.

These companies are built on a different business model compared to the earlier category killers, which mainly competed on price. The new breed of online businesses not only compete on price but also on convenience of purchase and after-sales support.

What retailer offers a narrow but deep assortment of merchandise?

Which type of store carries a deep assortment?

Which type of retailer typically carries deep product?

Which type of retailer is much larger than a regular supermarket and offers a large assortment of routinely purchased food products nonfood items and services?

Which type of store is small and offers a limited merchandise assortment at very low prices?