Category Killers: The Retail Revolution and Its Impact on Consumer Culture

by Robert Spector

Explores the rise of retail's reigning disrupor: retailers who seek to dominate a distinct classification of merchandise and wipe out the competition. Based on decades of research and investigative reporting. Recounts how some retailers have profoundly altered cultural and economic factors.

Genres: Nonfiction

272 pages, Hardcover

First published January 1, 2005

About the author

Robert Spector is an author of business books, consultant and motivational speaker focusing on customer service.

Reviews

[Robert · Rating 5 out of 5]

In the Introduction, Spector characterizes category killers as "the most disruptive concept in retailing" because "their goal is to dominate the category [e.g. toys, office supplies, home improvement] and kill the competition - whether it be mom-and-pop stores, smaller regional chains, or general merchandise stores that cannot compete on price and/or location." Spector notes that category killers "have helped to expand and upscale the 'mass market' by aggressively driving down the prices of goods and services." That was precisely Charles Lazarus' pricing strategy when he adopted the supermarket model and opened the first discount toy store in 1958, offering a wide variety of toys at 20-50% lower prices. Lazarus was the founder of a children's furniture store that became Toys "R" Us and is credited with establishing the first "category killer." Spector acknowledges that a discussion of the transformation of consumer culture would be incomplete without considering the impact of Wal-Mart Stores, Inc. and Costco because "they take huge bites out of category killers." Today, Wal-Mart sells more toys than does Toys "R" Us and Costco sells more books than does Barnes & Noble.

He provides a context, indeed an historical frame-of-reference, within which be examines with rigor and eloquence a process of natural selection in the retail industry since the 1950s. He helps his reader to understand how category killers such as Toys "R" Us, Korvette, Barnes & Noble, Borders, Home Depot, Lowe's, Staples, Office Depot, PETCO, PETsMART (which "eschews the term `category killer'"), Circuit City, Best Buy, Wal-Mart, K-mart (with the hyphen later dropped), and warehouse clubs (e.g. Price Club, Costco, and Sam's Club) established and then sustained dominance, at least for a period of time, only to find themselves challenged or, in some instances, eliminated by a new generation of competitors. "A constant theme of this book is that retail and consumer culture are always evolving. Retailing in a free market is always fluid. Concepts, locations, population migrations, tastes, brands, pricing, and executive leadership are forever in motion." Spector then goes on to suggest that in retailing, "you get a new report card every day" and "past performance is no guarantee of future success."

Based on what I have learned from Spector and others who have also written about the retail industry, it seems to me that Starbucks (the only non-big box company Spector discusses), Barnes & Noble/Borders, Home Depot/Lowe's, Staples/Office Depot, PETCO/PETsMART Circuit City/ Best Buy, and Costco/Sam's Club) did not "kill" categories. Rather, they devised a new business model for the merchandising of toys, books, home improvement, office supplies, etc. They realized that, if given the choice, consumers would prefer to have what mom-and-pop stores, smaller regional chains, and general merchandise stores could not offer to them. Just as a liquid almost always assumes the shape of a container, whatever has the greatest appeal to a consumer will almost always generate the most sales.... but only so long as that appeal is sustained.

[pianogal · Rating 2 out of 5]

I had to read this one for school, and while it wasn't my first choice, I will say I didn't mind reading it. The author is fairly knowledgeable about his subject, and for once doesn't just talk about Wal-Mart.