The Home Depot entered the market as a store for professional and amateur plumbers,electricians,and carpenters.Then it introduced its garden centers.Next came its home design center that provides help with all kinds of interior decorating problems.Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers.The addition of more amenities and greater assortment can be best explained by which of the following?
A)the interconnectedness of the retail life cycle
B)the trend toward disintermediation
C)the success of off-price retailers
D)the wheel-of-retailing hypothesis
E)the 80/20 rule of retailing

Question

Quizplus · Accepted Answer

The Home Depot's expansion of its offerings fits the wheel-of-retailing hypothesis, which suggests that retailers typically begin as discounters or low-price operators and gradually add more services and amenities over time, ultimately becoming more upscale and higher priced. The Home Depot started as a store for professionals and amateurs, but has gradually expanded its offerings to include garden centers, home design centers, and now even more expansive garden centers with knowledgeable staff.

The Home Depot Entered the Market as a Store for Professional