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Category killer
Retailer with a large product range From Wikipedia, the free encyclopedia
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A category killer is a type of retailer, usually a big-box store, that specializes in a single product category and carries a wide assortment of related goods.[1]: 109–111 By offering extensive selections, competitive pricing, and leveraging large-scale bargaining power, these stores often gain a comparative advantage over smaller retailers and can significantly reduce competitors’ sales within that category increasing their market penetration.[2]
They are generally described as discount-orientated specialist mass retailers.[1]: 13 [2] Examples include chains such as OfficeMax, Best Buy, Barnes & Noble, and Hobby Lobby.[3]
Category killers were once most commonly located in power centers, but are now often found within or adjacent to repurposed shopping malls.
Large category killer stores are typically located in mid- to large-sized cities, where sufficient population density supports their operations.[1]: 33
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Impact
Local merchants in cities with category killers "may suffer a substantial reduction in sales," and stores in a wider radius can be affected by the draw.[1]: 109–111 Between 1983 and 1993, Iowans spent 31% less in hardware stores, translating to a loss of 37% in the same time to those stores as a result of category killer stores.[1]: 67–68, 89
United States retailers
Sporting goods stores that are category killers range in footprint from 10,000 to 40,000 square feet (930 to 3,720 m2).[1]: 37 Home Depot carries 30,000 items in 100,000-square-foot (9,300 m2) stores.[4]: 148
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