How do specialty retailers differ from "hypermarkets," "supercenters," and "convenience stores"? Why are some businesses called "category killers"?

Question

What will be an ideal response?

Answer 1

"Specialty retailers" offer less variety than department stores. They are very narrowly focused and offer a relatively narrow merchandise mix aimed at a particular target market. Specialty stores offer a great deal of merchandise depth such as styles, colors and sizes. Whereas "hypermarkets" are a hybrid retailing format combining the discounter, supermarket, and warehouse club approaches under a single roof. On the other hand, "supercenters" offer a wide range of aggressively priced grocery items plus general merchandise in a space that occupies about half the size of a hypermarket. Supercenters are an important aspect of Walmart's growth strategy, both at home and abroad. Convenience stores offer some of the same products as supermarkets, but the merchandise mix is limited to high-turnover convenience and impulse products. Prices are generally higher compared to supermarket prices. "Category killers" is the label many in the industry use when talking about stores such as Toys "R" Us, Home Depot, and IKEA. It refers to the fact that such stores specialize in a particular product category such as toys or furniture and offer a vast selection at low prices. These stores represent a very influential business which can demolish smaller, more traditional competitors and prompt department stores to scale down merchandise sections that are not competitive.