What does the term "category killer" refer to in retail?

The term "category killer" refers to a retail chain that significantly dominates a specific market segment, often to the extent that it puts smaller competitors out of business. These retailers typically have a vast selection of products within their category and are known for competitive pricing, which attracts a large customer base. Their dominance often leads to a considerable market share in that category, allowing them to influence trends and consumer preferences.

For instance, a retailer like Home Depot in the home improvement sector exemplifies a category killer. Its extensive selection and pricing strategies make it difficult for smaller hardware stores to compete effectively. The success of category killers often stems from their ability to leverage economies of scale, offering consumers a one-stop shopping experience that smaller retailers cannot match.

In contrast, other options describe different types of retail operations. Retail chains with limited product selection don't typically fit the definition of a category killer, as they lack the breadth and competitive edge needed to dominate a market. Small boutiques, while specializing in niche products, do not generally have the market influence associated with category killers. Similarly, supermarkets that carry various goods might not focus on dominating a specific market segment in the same way category killers do.