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Unformatted text preview: CE STORES are like miniature supermarkets. They carry only a limited line of
high-turnover convenience goods. Convenience stores offer convenient locations, long hours, and
fast service. Prices are usually higher, and gross margins are moderately high. Most convenience
stores are self-service organizations.
REF: 232 | 234-235
OBJ: 15-2 | 15-3
TOP: AACSB Communication
KEY: CB&E Model Distribution
MSC: BLOOMS Synthesis
5. A specialty store is not only a type of store but also is a method of retail operations. Describe the
specialty store strategy. Then name two examples of specialty stores.
Specialty stores specialize in a given type of merchandise such as children’s clothing, baked
goods, and pet supplies. Specialty stores carry a narrow assortment of merchandise but a very
deep product selection. Specialty stores typically offer more customer service and more
Prices and gross margins tend to be high, but this is of secondary importance to the customer who
strongly values distinctive merchandise, attractive stores, and quality personnel.
Examples of specialty stores include Benetton, Victoria’s Secret, The Body Shop, Footlocker, and
Crate & Barrel.
KEY: CB&E Model Distribution OBJ: 15-3 TOP: AACSB MSC: BLOOMS Synthesis 6. Discount stores are retail chains that compete on the basis of low prices, high turnover, and high
volume. Name and briefly describe four types of discounters, and give an example of each type.
FULL-LINE DISCOUNTERS. These stores are similar to traditional department stores, except
that they carry a much broader assortment of well-known, nationally branded “hard goods” and
offer consumers very limited service. Most full-line discounters are national chains such as
Kmart, Walmart, and Target. Supercenters combine a full line of groceries and general
merchandise with a wide range of services.
SPECIALTY DISCOUNT STORES. Single-line specialty discount stores offer consumers a
nearly complete selection of one line of merchandise and use self-service, discount prices, high
volume, and high-turnover merchandise in their retailing strategies. These stores are also called
“category killers” because they dominate their narrow segment. Toys “R” Us (toys), Home Depot
(home improvement), Office Depot (office supplies), and Best Buy (electronics) are examples.
WAREHOUSE MEMBERSHIP CLUBS. These are usually warehouse outlets that allow
members to buy items on a cash-and-carry basis. Examples include Costco and Sam’s Club.
OFF-PRICE RETAILERS. These retailers buy manufacturers’ overruns, irregular merchandise, unsold end-of-season output, and goods from bankrupt stores. The merchandise is then sold at
large discounts from traditional department stores. Examples include T.J.Maxx, Ross Stores,
Marshalls, and Tuesday Morning. A special case of this type is the single-price store, such as
Family Dollar, Dollar General, and the One Price Clothing Stores...
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This document was uploaded on 09/29/2013.
- Fall '13