The rapid initial growth of the warehouse store and the off-price chain can be explained by the wheel of retailing theory.

Question

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The wheel of retailing theory suggests that new retailers enter the market by offering low prices and limited services, eventually adding more services and increasing prices as they become more established. The warehouse store and off-price chain models fit this pattern, as they initially offered limited services and lower prices in order to gain traction in the market.

The Rapid Initial Growth of the Warehouse Store and the Off-Price