Definition
A Variety Store is a type of retail establishment that carries a wide assortment of merchandise across various categories, all typically offered at low and popular price points. These stores are specifically designed to cater to the needs and preferences of the family market, offering products that range from everyday essentials to seasonal goodies. The product assortment often includes clothing (apparel), women’s accessories, gift items, stationery, toys, household goods, and sometimes small electronics.
Examples
- Dollar Stores – Such as Dollar Tree or Dollar General, where a vast array of products is offered at extremely low prices, usually under one or a few dollars.
- Five-and-Dime Stores – Stores like the historic Woolworth’s, which carried a variety of affordable goods.
- Discount Department Stores – Stores such as Target or Walmart that, while larger and carrying greater variety, include a broad range of low-cost items.
Frequently Asked Questions (FAQs)
What distinguishes a variety store from a department store?
Variety stores primarily focus on low-cost items and often have a more limited range compared to department stores, which can include higher-end products and a broader selection across many departments.
Why are variety stores popular?
Variety stores attract customers by offering a wide range of products at affordable prices, making them ideal for budget-conscious shoppers looking to fulfill multiple needs in one place.
Are variety stores profitable?
Yes, variety stores can be very profitable due to their low pricing strategy and high volume of sales. Their business model focuses on high turnover with narrow profit margins but consistent customer demand.
Do variety stores carry branded items?
Yes, some variety stores carry branded items, although these may not always be the latest or premium versions. They often include overstock, discounted, or previous-season products from known brands.
What products are commonly found in a variety store?
Products often found include clothing, women’s accessories, gift items, stationery, toys, household cleaning supplies, small kitchen appliances, seasonal decorations, and sometimes snacks and beverages.
- Discount Store: A retail store that sells products at prices lower than those typically found in traditional retail outlets.
- Dollar Store: A variety store where most products are sold for $1 or very close to it.
- Department Store: A large retail establishment with multiple departments offering a wide range of goods, including apparel, home goods, and often more diverse categories than variety stores.
Online Resources
Suggested Books for Further Studies
- “Retail Management: A Strategic Approach” by Barry Berman and Joel R. Evans
- “The Art of Retail Buying: An Insider’s Guide to the Best Practices from the Industry” by Marie-Louise Jacobsen
- “Managing Retail Consumption” by Pacelle R. Bran
- “Dollar Store Diet” by Greg J. Powel
Fundamentals of Variety Store: Retail Basics Quiz
### What is a primary feature of a variety store?
- [ ] High-end luxury items
- [ ] Heavily discounted branded electronics
- [x] Items in the low and popular price ranges
- [ ] Exclusive club membership
> **Explanation:** A primary feature of a variety store is the sale of items within the low and popular price ranges, catering to budget-conscious shoppers.
### Which of the following is a typical product category in a variety store?
- [ ] Luxury handbags
- [ ] High-end electronics
- [ ] Custom furniture
- [x] Stationery
> **Explanation:** Stationery is a typical product category in a variety store, alongside other everyday household items, apparel, and accessories.
### What customer segment do variety stores primarily target?
- [x] Family market
- [ ] Business executives
- [ ] Luxury buyers
- [ ] Tech enthusiasts
> **Explanation:** Variety stores primarily target the family market by offering affordable, widely needed products.
### How do variety stores typically price their items?
- [ ] At premium rates
- [ ] On a high-profit margin basis
- [x] At low and popular prices
- [ ] By subscription
> **Explanation:** Variety stores typically price their items at low and popular prices to attract a wide range of customers looking for affordability.
### Which store would be an example of a variety store?
- [ ] Apple Store
- [ ] Gucci Boutique
- [x] Dollar Tree
- [ ] Home Depot
> **Explanation:** Dollar Tree is a classic example of a variety store with a large assortment of affordable products.
### What historical store type is closely aligned with the concept of a variety store?
- [x] Five-and-Dime Stores
- [ ] Exclusive boutiques
- [ ] Online auction houses
- [ ] Specialty coffee shops
> **Explanation:** Five-and-Dime stores are historical predecessors to modern variety stores, focusing on low-cost, widely varying merchandise.
### Which term is closely related to variety stores and involves selling lower-priced items?
- [ ] Boutique
- [x] Discount Store
- [ ] Premium Outlet
- [ ] Custom Retailer
> **Explanation:** Discount stores are closely related to variety stores as both focus on selling lower-priced items.
### Why would customers choose variety stores?
- [ ] For luxury-focused shopping
- [ ] For niche specialized products
- [x] For affordability and convenience
- [ ] For bespoke services
> **Explanation:** Customers choose variety stores for their affordability and convenience, offering a range of necessary items in one location.
### What is a unique business model characteristic of variety stores?
- [ ] High-value, low-turnover inventory
- [x] High turnover, low-profit margin
- [ ] Membership-only access
- [ ] Customizable product offerings
> **Explanation:** Variety stores operate on a high turnover, low-profit margin model to maintain profitability through large volumes of sales.
### Which product type is less likely to be found in a variety store?
- [ ] Toys
- [ ] Household goods
- [ ] Women's accessories
- [x] Custom-made suits
> **Explanation:** Custom-made suits are high-end, specialized products not typically found in variety stores known for affordable, mass-market items.
Thank you for exploring the multi-faceted world of variety stores through our comprehensive guide and engaging quiz!
