Can divertive competition occur only in intertype competition—that is, where two

different types of retailers with a similar product compete with each other?

Answer

Divertive competitions can occur between similar retailers (intratypes) or other retailers
(intertypes).

Whether pharmacy compared to pharmacies or pharmacies compared to Superstore, a retail

classification to represent them. Retailers are classified as a specific type of North American
Industrial Classification System . These categories are determined to verify retail data in the
US economy. For example, if researchers want to consider how the only grocery stores in the
country are active, you can go to this classification and collect related information. Here are
the most important types of retail competition.

Competitions that belong to the intertype category compete for two or more stores of
different types of the same customer. Again, this relies on how NAICS classifies stores like
pharmacies competing with supermarkets. This retailer sells different but similar products.
For example, if you go to a recent grocery store, you have the option of buying fresh flowers,
decorative cakes and greeting cards. In this way grocery stores compete with dedicated
greeting card stores like florists, bakeries and Hallmark.

In the opening scenario, we saw an example of intra-type classification of retail competition.

This is the case when two or more stores of this type collide to win the consumer's business.
It could be two pharmacies competing with each other or a grocery cluster in the same
community claiming and fighting the same customer pool.

Someone once said that ‘‘the supercenter format will kill the grocery retailers.’’
However, this hasn’t happen. Can you think of an explanation as to why this hasn’t
occurred?

Answer

Grocery retailers are still bullish because they offer more "real food" that doesn't provide
everything they need in one place. For example, I don't go to Wal-Mart to buy produce and
bread. Because it is not as fresh as possible and often does not offer many organic and natural
options when compared to the central market. Customers decide to go to a grocery store
because they know that when they buy groceries, they can't get out of the food looking at
clothes, appliances and home decor.