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Sine their whole approach revolves around offering low prices, this goes hand in hand with low margins.
Customer Service: Specialty stores focus on offering customer service. Selling their high prices and high margin offerings requires a high level of customer assistance and service from its sales force. Customers feel like they deserve and are paying for knowledge and service when they shop at stores such as Williams-Sonoma.
Atmosphere/Experience: When someone walks into a specialty store they are being sold on a concept. A specialty retailer selling higher end goods would not prevail if their physical stores had the atmosphere of a Wal-Mart for example...
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