The idea that new types of retailers begin as low-status, low-margin, low-price operators and then-if successful-evolve into more conventional retailers offering more services is called the:

Question

Quizplus · Accepted Answer

The given scenario is a classic example of the wheel of retailing theory, which explains how new retail formats start at the bottom of the retail hierarchy and gradually move up as they gain acceptance and success. As they move up, they tend to increase their prices, margins and the services offered to customers.

The Idea That New Types of Retailers Begin as Low-Status