DECA Retail Merchandising Practice Exam

Which type of retailer offers a limited and irregular assortment of products with low prices?

1. Department store

2. Supermarket

3. Warehouse club

4. Supercenter

The correct answer is: Warehouse club

The correct answer is a warehouse club. This type of retailer is characterized by a membership-based model that provides consumers with access to a limited and irregular assortment of products, typically at lower prices compared to traditional retail stores. Warehouse clubs focus on bulk purchasing and a no-frills shopping environment, which helps keep their operating costs low and allows them to pass on the savings to members. They offer items in larger quantities and less variety within each category, which is different from department stores that have a wide selection of products across various departments, supermarkets that offer a broad range of food and household items, and supercenters that integrate grocery and general merchandise on a larger scale with a more extensive assortment. This unique focus on irregular assortment and low prices is what distinguishes warehouse clubs in the retail landscape.