Final answer:
Specialty stores are defined as having a narrow yet deep merchandise mix complemented by high levels of service, often aligning with a core competency strategy where businesses focus successfully on a limited range of products or services.
Step-by-step explanation:
By definition, specialty stores feature a narrow but deep merchandise mix and high levels of service. This retail concept is based on providing a specialized range of products and services with a focus on quality and customer experience. Such stores are able to thrive by catering to specific customer needs and creating an environment of exclusivity and expertise, which contrasts with the wide and shallow product assortments often found in general stores or supermarkets. Interestingly, a core competency strategy is often mentioned when analyzing business success in various industries including specialty retail, indicating that companies focusing on a limited set of skills or product areas tend to perform better compared to their competitors.