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?

Question

Quizplus · Accepted Answer

The Home Depot's strategy of expanding its product offerings and adding more amenities like garden centers aligns with the wheel-of-retailing hypothesis. This theory suggests that retailers start out offering basic products and services at low prices, but over time they add more features and services while also raising prices, eventually creating opportunities for new low-cost competitors to enter the market. By expanding into new product categories and offering more extensive services like home design and gardening, The Home Depot is following this pattern of retail evolution.

The Home Depot Entered the Market as a Store for Professional