A combination store is the one which unites Supermarket & general merchandise together. These stores also combine food & drug stores. The general merchandise accounts for 25 to 40 percent of overall sales.
The format began in around late 1960 & early 70s, as common checkout areas were set up for supermarkets & drugstores or general merchandise stores & supermarkets. After this they were integrated under one roof to form combination stores. Combination stores are large, having area of 30000 to 100000 or more square feet than this. Such a huge area shopping area leads to operating efficiencies & cost reduction. Consumers like one-stop saving where they could get most of the products. The chances of impulse purchase also increases as the consumer browses through the aisles. These stores are the expanded versions of Supermarket.
For example Meijer’s stores carrying around 120,000 items is very popular among the shoppers.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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