A category killer is a retailer, often a big-box store, that specializes in and carries a large product assortment of a given category.[1] Through their wide merchandise selections, low pricing, deep supply, large buying power, and market penetration, they have a comparative advantage over other, smaller retailers, and can greatly reduce the sales of rival retailers within that category, in the area[2] and beyond it.[1]
In essence, they are a price- or discount-based specialist mass-retailer. Chains such as OfficeMax, Best Buy, Barnes & Noble, and Hobby Lobby have been considered category killers.[3]
Once typically found in power centers, increasingly they are found in or adjacent to (as an outbuilding of) repurposed traditional malls.
Large category killer stores are mostly in mid- and large-sized cities, because a large population is required to be feasible.
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. 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.
The Home Depot | Home and construction |
Best Buy | Electronics |
Toys "R" Us | Toys |
Indigo Books and Music | Books |
Staples | Office supplies |
Shoppers Drug Mart | Drug Stores |
PetSmart | Pet supplies |
Party City | Party supplies |
Dollarama | Dollar Stores |
Sporting goods stores that are category killers range in footprint from 10000to.Home Depot carries 30,000 items in 100000square feet stores.[4]
The Home Depot | Home and construction | |
Lowe's | ||
Builders Square | 1999 (stores) 2009 (brand) | |
Home Quarters | 1999 | |
Circuit City | Electronics | 2009 (stores) 2012 (brand) |
Best Buy | ||
Toys "R" Us | Toys | 2018 - 2021 (US stores) |
Barnes & Noble | Books | |
Borders | 2011 | |
OfficeMax | Office supplies | |
Office Depot | ||
Staples | ||
Petco | Pet supplies | |
PetSmart | ||
Party City | Party supplies | |
The Gap | Clothing | |
Old Navy |