Stores that practice niche retailing only focus on a category of products. For example, stores that only sell shoes instead of combining multiple products. Since they focus on a category of products, these retailers also add some complementary products that are necessary. For a shoe store, the retailer can also integrate show wax or insoles.
Why is niche retailing important?
This retailing approach is one that increases brand loyalty because your store becomes top of mind. While stores that sell multiple products gain from the diversity, they have very few loyal customers. Niche retailers have fewer competitors. When you offer only one category of products it’s hard to have a lot of competition.
Since retailing is all about catering to the needs of your customers, having a niche store will help you increase customer satisfaction. When people know they need shoes, they will come to your store first because they know you have a lot of models compared to other stores.