Category Killer retailers stock a broad range and depth of merchandise in a specific category. For Best Buy, it's consumer electronics. For Borders and Amazon.com, it's books. For Zappos.com, it's shoes.
You don't need to have hundreds of locations to be a Category Killer store. With only 22 stores in just eight U.S. states, Scheel's is a Category Killer when it comes to sports, hunting, and fishing merchandise. The Scheel's in Sparks, Nevada has a carnival-size Ferris wheel inside the store.
But you don't need to have a giant footprint either. Consider Sunglass Hut. Each store—merely a gnat on the scale of store sizes—carries a wide-ranging assortment in a very narrow merchandise category. Even if you're a small to midsize retailer, you can develop a niche that makes you a destination location.
There are a few things you do need, though. First is some diversification. Your profitability is at risk if you depend on a narrow product offering. Even a tiny Sunglass Hut carries accessories. Zappos now outfits the body above the feet, and Amazon will sell you shoes.
Also, you must maintain the trust of shoppers that your store has expertise about your niche. In surveys conducted by Advertising Age/ARC, consumers in every age group from teenagers on up said that what was most important to them was brand trustworthiness. For retailers, your store is your brand.
So are your staff experts in both the technical details and the fashion trends? That requires ongoing employee training. Do your ads and displays give valuable information to the shopper about the niche category, such as shopping tips? Is the merchandise arranged to prove you understand the important features that distinguish one product from another?
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