Which stores are referred to as category killers?

Study for the IEDC Real Estate Development and Reuse Exam. Harness the power of flashcards and multiple-choice questions, each enriched with hints and explanations. Get ready for success!

Category killers are large retail chains that dominate a specific category of product offerings by providing an extensive selection of products at competitive prices, often surpassing their smaller competitors. These stores typically operate as mass merchant retailers, leveraging economies of scale to offer a wide variety of goods while maintaining lower price points. This strategy allows them to capture significant market share in that specific category, effectively "killing" competition from smaller specialty stores.

In this context, mass merchant retailers exemplify category killers because they focus on large volumes of inventory across broad categories, routinely attracting customers seeking both variety and affordability. Their ability to keep costs lower than smaller retailers often leads to a dominant position in their market segment, reshaping consumer purchasing behaviors.

The other types of stores mentioned do not fit the description of category killers. Specialty stores offer unique products but lack the extensive selection and pricing power of mass merchants. High-end boutiques cater to luxury markets and focus on exclusive brands, which typically do not engage in broad competition in terms of pricing. Discount stores may have limited inventory and therefore do not provide the comprehensive range needed to be categorized as category killers.

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