Product Line

Retailers also may be classified by the breadth and length of their product assortments. Some retailers, like specialty stores, carry narrow product lines along deep assortments within those lines. Nowadays, specialty stores are flourishing. The enhancing use of market targeting, market segmentation and product specialization has resulted in a higher need for stores that focus on particular products and segments.

By contrast, department stores carry a wide variety of product lines. In current years, department stores have been squeezed between flexible specialty stores and more focused on the one hand, and more efficient, lower-priced discounters on the other. In response, various have added "bargain basements" and promotional events to meet the discount threat. Others have settle up store brand programs, "designer shops" and "boutiques" within department stores), and other store formats that compete with specialty stores. Still others are trying mail-order, telephone, and Web site selling. Service remains the chief differentiating factor.

Supermarkets are the most frequently shopped type of retail store. However, nowadays, they are facing a slow sales growth because the reason of slower population growth and an increase in competition from discount food stores, convenience stores & superstores. Supermarkets also have been hit barely by the rapid growth of out-of-home eating. Therefore, most of the supermarkets are making improvements to draw more customers. In the battle for "share of stomachs," most of the large supermarkets have moved upscale, by providing from-scratch bakeries, fresh seafood departments and gourmet deli counters. Others are cutting costs, launching more efficient operations, and lowering prices to compete more effectively with food discounters.

Convenience stores are small stores that carry a restricted line of high-turnover convenience goods. In the year 1990s, the convenience store industry suffered a lot from overcapacity as its prime market of young, blue-collar men shrunk. As a consequence, various chains have redesigned their stores along female customers in mind. They are dropping the image of "truck stop" where men go to purchase cigarettes, beer and magazines, and rather than offer fresh, prepared foods and safer environments, cleaner. Various convenience chains also are experimenting through micromarketing-tailoring each store's merchandise to the particular needs of its surrounding neighbourhood. Superstores are much larger than steady supermarkets and offer a high assortment of routinely purchased non food items, food products and services Stores, so-called category killers. These particular feature stores the size of airplane hangars that carry a very deep assortment of a specific line with a knowledgeable staff. In a wide range of categories, category killers are prevalent including baby gear, books, toys, home improvement products, electronics, linens and towels, sporting goods, party goods even pet supplies. Another superstore variation, hypermarkets, is big superstores, possibly as large as six football fields. At last, for some retailers, the product line is in fact a service. Service retailers include motels and hotels, airlines, banks, colleges, hospitals, movie theatres, tennis clubs, restaurants, bowling alleys, hair care shops, repair services and dry cleaners.