Specialty Retailer
Definition
A specialty retailer is a retailer that focuses on a specific line of merchandise tailored to a particular and usually selective clientele. Unlike general retailers that offer a wide range of products, specialty retailers provide a narrow but deep selection of goods within a defined category. These retailers are known for their expertise in their chosen product lines and often offer high-quality customer service.
Examples
- Stores selling video tapes
- Bagel shops
- Leather goods stores
- Imported china shops
Frequently Asked Questions
Q: What distinguishes a specialty retailer from a general retailer?
A: The primary distinction is the focus on a single line of merchandise. While general retailers offer a variety of products across different categories, specialty retailers concentrate on a specific niche, providing a deep assortment in that area.
Q: Why do consumers prefer specialty retailers?
A: Consumers often prefer specialty retailers because they offer higher expertise, a more specialized selection, and personalized customer service in their specific merchandise category.
Q: Can a specialty retailer succeed in a small market?
A: Yes, a specialty retailer can succeed in a small market if there is sufficient demand for their specific line of products. They often attract a dedicated customer base that values the specialized offerings and expertise.
Q: How do specialty retailers compete against large department stores?
A: Specialty retailers typically compete by offering superior customer knowledge, niche products not commonly available in department stores, and an enhanced shopping experience tailored to their specific clientele.
Q: Are online-only stores considered specialty retailers?
A: Yes, online-only stores can be considered specialty retailers if they focus on a specific merchandise line and target a selective audience through their digital presence.
- Specialty Shop: A small retail store specializing in a particular type of product or service, often unique to its location or brand.
- Niche Market: A focused, targetable portion of a broader market that can be defined by its unique needs, preferences, or identity.
Online References
Suggested Books for Further Studies
- Retail Management: A Strategic Approach by Barry Berman and Joel R. Evans
- Specialty Shop Retailing: How You Can Succeed in Today’s Market by Carol L. Schroeder and Susan Manegold
- Operations Management in the Supply Chain: Decisions and Cases by Roger G. Schroeder, Susan M. Goldstein, and M. Johnny Rungtusanatham
Fundamentals of Specialty Retailers: Retail Management Basics Quiz
### Which type of product focus is characteristic of a specialty retailer?
- [x] A specific line of merchandise
- [ ] A variety of unrelated products
- [ ] Mainly regional products
- [ ] Discount goods of all kinds
> **Explanation:** Specialty retailers are characterized by their focus on a specific line of merchandise rather than a variety of unrelated products.
### What is a key advantage specialty retailers offer over general retailers?
- [ ] Lower prices
- [x] High expertise in a specific category
- [ ] Larger store size
- [ ] More advertising
> **Explanation:** Specialty retailers offer high expertise and enhanced customer service in their specific merchandise category, setting them apart from general retailers.
### Which of the following stores is an example of a specialty retailer?
- [ ] A department store
- [ ] A supermarket
- [x] A leather goods store
- [ ] A convenience store
> **Explanation:** A leather goods store is a specialty retailer because it focuses on a specific type of product and serves a selective clientele.
### What type of clientele do specialty retailers typically serve?
- [ ] General public
- [x] Selective and target-specific audience
- [ ] Only wholesalers
- [ ] Only employees
> **Explanation:** Specialty retailers serve a particular and usually selective clientele who are interested in the specific line of products they offer.
### How can specialty retailers compete with large retail chains?
- [ ] By reducing product quality
- [ ] By offering a wider range of products
- [ ] By lowering service quality
- [x] By providing specialized knowledge and personalized service
> **Explanation:** Specialty retailers can effectively compete with large retail chains by offering specialized knowledge and personalized service, which large chains may lack.
### In what way can online stores become successful specialty retailers?
- [ ] By offering randomly selected products
- [ ] By generalizing their merchandise
- [ ] By lowering all services
- [x] By focusing on a specific product line
> **Explanation:** Online stores can become successful specialty retailers by focusing exclusively on a specific product line and attracting a targeted audience.
### What is a common challenge for specialty retailers in small markets?
- [x] Ensuring sufficient demand
- [ ] Reducing product offerings
- [ ] Undercutting prices
- [ ] Avoiding niche markets
> **Explanation:** A common challenge for specialty retailers in small markets is ensuring there is sufficient demand for their specific line of products.
### Why might consumers trust specialty retailers more than general retailers?
- [ ] They offer more discounts
- [ ] They have larger stores
- [x] They have special expertise in their product category
- [ ] They carry a wide range of brand names
> **Explanation:** Consumers might trust specialty retailers more because of their special expertise and in-depth knowledge of the specific product category they focus on.
### Which business model suits a retailer that wants to offer niche products in-depth?
- [ ] General retail model
- [ ] E-commerce only
- [x] Specialty retail model
- [ ] Wholesale model
> **Explanation:** A specialty retail model suits a retailer that wants to offer niche products in-depth, as it focuses on a specific product category and caters to selective clientele.
### How are specialty shops and specialty retailers related?
- [x] Both offer specific lines of merchandise
- [ ] Both target the general public
- [ ] Both operate only online
- [ ] Both offer seasonal sales only
> **Explanation:** Specialty shops and specialty retailers are related in that both offer a specific line of merchandise and cater to a particular target market.
Thank you for diving deep into the concept of specialty retailers and challenging yourself with our quiz. Continue expanding your retail management knowledge and application!
