Category Killer

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Category Killer

An exceptionally large retailer that sells a wide range of products and, in doing so, drives smaller, specialized companies out of business. For example, when Wal-Mart became popular, it drove into bankruptcy a wide range of individual and small chain clothiers, hardware stores, and eventually groceries. Category killers are able to do this by providing essentially the same product at a much lower price, which they achieve by tightly controlling costs and the supply chain. See also: JIT.
References in periodicals archive ?
Toys 'R' Us is generally credited with having invented the category killer format when Charlie Lazarus took a bankrupt kids' goods retailer and converted it into a warehouse format specializing in one product classification.
To underscore the impact category killers have had on American retailing, Spector traces the rise and influence of several different companies, starting with Toys 'R' Us, acknowledged as one of the first such retailers, and going up to more recent megamerchants like Home Depot Inc.
In contrast, the rise of category killers is a contraction of the accordion: less breadth of selection, but more depth.
Hanson contends that conventional office supplies stores and small wholesalers are the ones really being hurt by category killers.
Office Depot, Office Warehouse and other category killers such as Drug Emporium, Home Depot and Toys R Us think they offer the best of both worlds.
Leading category killers grow ever larger and more dominant in their relevant markets.
On the down side, the category killers have left many manufacturers in the $62 billion U.
The same analogy applies to the litany of category killers dotting the marketplace.
While category killers drove demand in 2005, shipments in 2006 should see strengths among grocers and specialty stores, says a new study released today by IHL Consulting Group.
Are the rest of the category killers vulnerable to similar fates?
Throughout Queens, category killers like Rite-Aid drugstores, Boston Market restaurants and Starbucks coffee shops are moving in.
New to the list of competitive threats are category killers.