Chapter 2 Questions

Chapter 2: Types of RetailersLisa Martinez’s Assignment

1. What is the difference between full-line discount stores, extreme-value retailers, and off-

price retailers in terms of characteristics?

• Full-Line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices. They often offer both private labels and national brands. (ex. Walmart, K-Mart, Target)

• Extreme-Value retailers are also called dollar stores. They are small discount stores that offer a broad variety but shallow assortment of household goods, health and beauty care products, and groceries. (ex. Dollar Tree, Family Dollar, Dollar General)

• Off-Price retailers offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturer’s suggested retail price. (ex. TJ Maxx, HomeGoods, Marshalls)

• Each store offers different shopping experiences, varieties, assortments, and prices.

2. What are the benefits of the warehouse vs the discount store?

• Shopping at a warehouse club allows you to purchase in bulk. Discount stores don’t always allow for the bulk option. If you do purchase in large amounts at a discount store, you will generally spend more money than you would just purchasing the bulk items at a warehouse club.

3. What is the difference between category specialist and specialty stores?

• Category Specialists are big-box stores that offer a narrow but deep assortment of merchandise. Most category specialists predominately use a self-service approach. (ex. Best Buy, Michaels, Barnes & Noble, Mens Warehouse)

• Specialty Stores concentrate on a limited number of complementary merchandise categories and provide a high level of service. Specialty stores tailor their retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise. (ex. Victorias Secret, Sephora, MAC)