DECA Retail Merchandising Practice Exam

What is a characteristic of discount stores?

1. They carry a broad variety and deep assortment

2. They carry a broad variety and shallow assortment

3. They only sell specialty items

4. They offer high-end products

The correct answer is: They carry a broad variety and shallow assortment

Discount stores are characterized by carrying a broad variety of products while maintaining a shallow assortment within each specific category. This means they offer a wide range of different types of products, but not many options within each type. This strategy allows them to keep prices low and provide value to consumers, which is a primary goal of discount stores. By focusing on a broad selection rather than an extensive assortment within each category, these stores can minimize costs and pass savings onto customers, making them appealing to budget-conscious shoppers. In contrast, options that suggest a deep assortment or focus exclusively on high-end or specialty items do not align with the operational model of discount stores. Such models are typically associated with specialty shops or higher-end retailers.