Specialty Retail
Unlike general merchandise stores, these retailers focus on a specific category of goods - such as electronics, pet supplies, or beauty products - offering deep inventory within that niche.
Why it exists
Specialty retail focuses on narrow product categories that benefit from expertise, service, and curated selection.
Why it’s necessary
Not all commerce can be commoditized; some categories rely on knowledge, relationship, and trust.
Key components
Category-specific merchandising
Store-level expertise
Private-label development
Loyalty-based ecosystems
How to evaluate businesses
Category dominance, margin per square foot, loyalty penetration, private-label share, and service attachment rates drive performance.
How the industry could be improved
Membership models, AI-driven personalization, embedded services, flexible retail footprints, and faster product testing could sharpen competitive advantage.