Home Depot began as a simple retailing concept to provide a one-stop shopping for construction materials and tools whether for the professional or the do-it-yourselfer. It has evolved into a home and garden centre. It now has professional home interior
Decorators employed to help customers make decisions about lights, wallpaper, paint, etc. It also offers installation services on many of the items it sells. From being a
Relatively simple concept, Home Depot has become an international chain with higher margins and a diverse list of products. This evolution of Home Depot is consistent with the:
A)wheel of retailing.
B)fast food retail cycle.
C)evolution of retailing.
D)retail cycle.

Question

Quizplus · Accepted Answer

The wheel of retailing theory suggests that new retailers enter the market with low prices and a limited selection, and then gradually move upmarket as they become more established. Home Depot has followed this pattern, starting as a simple hardware store and evolving into a home and garden center with a wide range of products and services.

Home Depot Began as a Simple Retailing Concept to Provide