How to invest in specialty retail stores


Key Points

  • Specialty retail stores are stores that cater to a particular market segment or that offer a unique or niche type of product. 
  • Ulta Beauty, Nike and Apple are a few of the top names in specialty retail operating in the United States.
  • Learn more about the types of specialty retail investment opportunities on MarketBeat.
  • 5 stocks we like better than American Eagle Outfitters

Specialty retail stores are unique consumer stores that cater to a particular niche or carry only a select group of products. In a market of constantly changing consumer trends and buying habits, some investors are looking to specialty retailing outlets and their loyal customer bases as a source of growth. 

But what differentiates a specialty retail store from a standard consumer discretionary, and which investment options are worth your consideration? 

Read on to learn everything you need to know about specialty retail investment opportunities.

What is specialty retail?

In the retail sector, specialty retail is a unique and specialized sub-sector. Unlike general merchandise retailers, which offer a wide range of products to a broad customer base, specialty retailers focus on a particular product category or service and target a specific market segment. This focused approach allows specialty retailers to develop expertise in their chosen niche, offer a curated selection of merchandise and build a loyal customer base.

Defining specialty retail

Specialty retail can be defined as a segment of the retail industry characterized by the following:

  • Narrow product focus: Specialty retailers specialize in a specific product category, such as sporting goods, jewelry, or home improvement. This allows them to offer a deep and comprehensive selection of products within their niche, catering to their target customers’ specific needs and preferences.
  • Targeted marketing: Specialty retailers use targeted marketing strategies to reach their target audience. This can include advertising in niche publications, attending industry trade shows and participating in online communities relevant to their product category.
  • Strong brand identity: Specialty retailers often build strong brand identities around their product expertise and commitment to customer service. This helps them differentiate themselves from competitors and build loyalty among their target customers.
  • Personalized service: Many specialty retailers offer customized services like product consultations and expert advice. This helps them build relationships with their customers and increase customer satisfaction.

How to invest in specialty retail stores infographic

Distinguishing specialty retail from mainstream retail

The key difference between specialty retail and mainstream retail lies in their product focus and target audience:

Specialty retailers often enjoy several advantages over mainstream retailers:

  • Deeper product knowledge: By focusing on a specific niche, specialty retailers can develop a deep understanding of their products and offer expert advice to their customers.
  • Stronger brand identity: A focused product category allows specialty retailers to build a strong brand identity that resonates with their target audience.
  • Loyal customer base: By catering to specific needs and interests, specialty retailers can cultivate a loyal customer base more likely to return and make repeat purchases.

The appeal of specialty products

Consumers are drawn to specialty products for several reasons:

  • Uniqueness: Specialty products are often unique and not readily available elsewhere, which gives consumers a sense of exclusivity.
  • Quality: Specialty retailers often focus on offering high-quality, well-made, durable products.
  • Expertise: Consumers can rely on the expertise of specialty retailers to help them choose the right product for their needs.
  • Personalization: Specialty retailers can offer a more personalized shopping experience, which many consumers appreciate.

In a retail environment that is becoming increasingly homogenized, specialty stores offer a welcome alternative for consumers seeking a unique and personalized shopping experience. Specialty retailers can thrive in the competitive retail landscape by focusing on a specific niche and building strong customer relationships.

Why invest in specialty retail stores?

If you’re first learning to invest, you might have heard the common advice to buy shares of companies that create products you’re familiar with and like, which may naturally lead you to some of the top specialty retail stores. Specialty retail stores focus on a specific niche market product category, allowing them to differentiate themselves from general retailers and better cater to customers’ needs. This can lead to higher customer loyalty and repeat business, which leads to higher returns for investors during earnings reports

Many specialty retail stores have strong brand recognition and customer loyalty, which can help them maintain a competitive advantage and weather economic downturns. However, while specialty retail stores can provide a unique level of consumer exposure and growth opportunities, they should complement a fully diversified portfolio. 

Evaluating specialty retail brands for investment

Investing in specialty retail brands is a tempting prospect in a thriving market, but it requires a thorough evaluation of potential investments. Here is an essential breakdown to help you evaluate specialty retail brands for investment:

Brand strength and differentiation

Specialty retail’s triumph hinges on several critical factors that profoundly influence its performance and market standing. Foremost among these is a Unique Value Proposition (UVP), signifying the brand’s ability to carve a distinctive niche amid competition by offering something unparalleled and compelling. This uniqueness defines its market positioning and customer appeal. Brand awareness and recognition are also pivotal determinants, encompassing its visibility and positive reputation within its target market. A robust brand identity often aligns with higher trust and loyalty among consumers. Lastly, customer loyalty is a crucial metric, reflecting the brand’s capacity to retain a devoted customer base while ensuring sustained satisfaction with the products or services offered. This loyalty signifies repeat business and amplifies the brand’s overall reputation through positive word-of-mouth endorsements, further cementing its market position.

Financial performance and growth potential

Understanding financial viability involves comprehensively analyzing a company’s financial statements, competitive landscape, growth strategy and management team.

Financial analysis

The first step in assessing financial viability is scrutinizing a company’s financial statements. This includes reviewing the income statement, balance sheet and cash flow statement to identify key metrics such as profitability, revenue growth and cash flow trends. Profitability measures a company’s ability to generate earnings and is typically expressed as a percentage of revenue. Revenue growth is the rate at which a company’s revenue increases over time. Cash flow is the amount of money a company has available after paying its expenses and is essential for maintaining a healthy financial position.


The next step is to examine the competitive landscape. This includes identifying the company’s competitors, strengths and weaknesses, and market share. It is also essential to assess the industry’s competitive intensity, which measures the level of competition within the industry. A high level of competition can make it difficult for a company to achieve profitability and growth. Every stock profile on MarketBeat has a competitors tab that breaks down the market competition in a way that makes it easy to understand. 

Growth strategy

The third step is evaluating the company’s market expansion and customer acquisition strategy. This includes understanding the company’s target market, marketing and sales plans and product or service development roadmap. Assessing the company’s growth strategy’s feasibility and ability to execute it successfully is also important.

Management team

The final step is to assess the experience and track record of the management team. This includes evaluating the team’s leadership skills, financial understanding and ability to execute growth strategies. It is also important to assess the team’s commitment to the company’s mission and values.

Industry trends and market opportunity

Insights into the wider industry landscape include:

  • Industry growth: Evaluate the growth trajectory of the specialty retail industry and the factors driving it.
  • Market size and opportunity: Determine the size and growth potential of the brand’s target market.
  • Digital presence: Assess the brand’s online customer outreach and sales strategies.

Risks and challenges

Identification of potential risks includes:

  • Competition intensity: Gauge the competitiveness within the brand’s niche and potential market share risks.
  • Economic downturn: Assess the brand’s resilience to economic fluctuations and consumer spending trends.
  • Operational risks: Identify any supply chain vulnerabilities or product-related risks.

Valuation and investment thesis

Determining fair value and potential future growth involves:

  • Comparative valuation: For fair assessment, compare the brand’s valuation metrics to competitors.
  • Investment thesis: Formulate a clear thesis based on projected growth and profitability.

To make sound investment choices, you should carefully assess these criteria, conduct in-depth research, stay up-to-date on industry trends and seek professional guidance. Diversification and patience are essential for navigating this dynamic market and achieving long-term success.

Financial due diligence in specialty retail investment

Investing in specialty retail requires a deeper analysis than examining the brand’s allure and market trends. Financial due diligence is crucial in identifying promising investment opportunities and mitigating potential risks. Here’s a breakdown of key financial metrics specific to specialty retail:

Profitability metrics

  • Gross profit margin: This metric indicates the percentage of revenue remaining after deducting the cost of goods sold. A higher gross profit margin suggests that the brand efficiently manages costs and pricing its products competitively.
  • Operating profit margin: This metric reflects the percentage of revenue remaining after deducting all operating expenses. A higher operating profit margin indicates that the brand efficiently manages its operations and generates consistent profits.
  • Net profit margin: This metric represents the percentage of revenue remaining after deducting all expenses, including taxes. This is the ultimate measure of the brand’s profitability.

Inventory efficiency

Inventory management is critical for specialty retailers, as it can significantly impact profitability. Two key metrics to assess inventory management efficiency are inventory turnover and days inventory outstanding (DIO).

Inventory turnover measures the times a retailer sells and replaces its inventory yearly. A higher inventory turnover indicates that the retailer is selling its inventory more quickly, which can lead to improved profitability. A lower inventory turnover can indicate that the retailer needs to carry more inventory, which can tie up cash and lead to obsolete inventory.

DIO measures the average number of days inventory sits on the shelves before it is sold. A lower DIO indicates that the retailer is turning its inventory over more quickly, which can lead to improved profitability. A higher DIO can suggest that the retailer is selling its inventory slowly, which can tie up cash and lead to obsolete inventory.

Both inventory turnover and DIO are essential metrics for specialty retailers to track, as they can provide valuable insights into the efficiency of the inventory management process. By understanding these metrics, retailers can make informed decisions about managing their inventory, leading to improved profitability.

In addition to inventory turnover and DIO, specialty retailers should consider several other factors when managing their inventory. These factors include:

  • The type of products that the retailer sells
  • The target market for the retailer’s products
  • The competitive landscape
  • The retailer’s financial resources

By considering all of these factors, specialty retailers can develop an inventory management strategy tailored to their specific needs.

Financial health

In addition to profitability and inventory efficiency, evaluating a specialty retail brand’s financial health is essential. Three key metrics shed light on its financial strength and risk profile:

  • Debt-to-equity ratio: This metric measures the proportion of debt used to finance the brand’s assets. A lower debt-to-equity ratio indicates less financial risk and a stronger balance sheet.
  • Current ratio: This metric measures the brand’s ability to meet its short-term obligations. A current ratio of at least 1.5 typically indicates a healthy liquidity position.
  • Interest coverage ratio: This metric measures the brand’s ability to cover its interest expenses with its earnings. A higher interest coverage ratio suggests a lower risk of default on debt obligations.

Growth metrics

Beyond financial health, understanding the brand’s growth trajectory is crucial. Here, two key metrics provide valuable insights:

  • Revenue growth rate: This metric measures the percentage increase in revenue year-over-year. A positive and consistent revenue growth rate indicates that the brand is successfully expanding its market share and driving sales.
  • Same-store sales growth: This metric measures the percentage increase in sales at existing stores, excluding new locations. This provides a more accurate picture of organic growth within the brand’s footprint.

Risk management strategies

A multi-pronged approach is essential to navigate the inherent risks of specialty retail investment successfully. Diversifying your portfolio across various brands and sub-sectors within the industry helps spread risk and avoid overexposure to any single niche. Additionally, implementing hedging strategies using financial instruments like futures contracts can mitigate losses arising from fluctuations in commodity prices or foreign exchange rates.

Proactive investors engage in scenario planning, developing contingency plans for diverse economic and market scenarios. This allows them to react swiftly and strategically to potential challenges. Finally, monitoring key financial metrics and market trends is essential for identifying early warning signs and adjusting investment strategies accordingly.

Performing thorough financial due diligence is essential for evaluating specialty retail investment opportunities. Investors can make informed decisions and mitigate potential risks by analyzing key metrics like profitability, inventory efficiency, financial health and growth potential. Additionally, implementing sound risk management strategies can further enhance the chances of success in this dynamic and potentially lucrative market. Remember, due diligence is an ongoing process, not a one-time event.

Ways to invest in specialty retail stores

There are multiple methods investors can use to gain exposure to specialty retail opportunities. 


Buying and selling individual shares of specialty retail stores is one of the most common ways to invest in this consumer sector. Individual shares of stock represent Before purchasing shares of stock, be sure to research the underlying company’s fundamentals, anticipated product launches and dividend payment history if you’re investing to create a passive income stream. Below are some examples of the top stocks in the specialty retail sector. 


A consumer discretionary ETF could be a better choice if you’re looking to invest in multiple retail outlets simultaneously. Exchange-traded funds (ETFs) are “baskets” of stocks selected by an expert or team of experts centered around a certain index. For example, a consumer discretionary ETF might contain a selection of some of the largest companies creating products shoppers tend to buy when incomes are high. 

An example of an ETF with specialty retail exposure is the SPDR S&P Retail ETF NYSE: XRT, which invests large percentages of its holdings into companies like Ollie’s Bargain Outlet and Gamestop. 

Commercial REITs

Commercial real estate investment trusts (REITs) can provide exposure to the specialty retail sector and potentially offer income benefits for investors. A REIT is a company that owns or operates income-generating real estate assets, such as office buildings, shopping centers and apartment complexes. These companies rent out spaces to tenants and redistribute income to investors after covering operating costs.

By law, REITs must distribute at least 90% of their taxable income to shareholders through scheduled dividend payments, making them a popular choice for income-oriented investors. If you’re a long-term investor looking to cultivate a selection of high-dividend stock picks, commercial REIT options like the Simon Property Group NYSE: SPG could be a stronger investment method. 

Technology and innovation in specialty retail investments 

The rise of technology has fundamentally reshaped the retail landscape, with specialty retail being no exception. Technology is vital in driving success and attracting investors in today’s market. Here’s a look at the impact of technology on specialty retail investments:

Impact of technology on success

In today’s fast-paced retail environment, technology is no longer an afterthought—it’s a key driver of success. From enhancing the customer experience to optimizing operations and fueling data-driven decision-making, technology can help specialty retail brands achieve remarkable results. Here are just a few examples:

  • Enhanced customer experience: Technology allows brands to personalize the shopping experience, offer seamless omnichannel integration and provide excellent customer service through chatbots and other AI-powered solutions. This increases customer loyalty and satisfaction, ultimately driving higher sales and profitability.
  • Improved operational efficiency: Technology empowers brands to optimize inventory management, supply chain logistics and marketing campaigns. This leads to cost savings and increased operational efficiency, further boosting the bottom line.
  • Data-driven decision-making: Technology provides access to valuable customer data and insights, enabling brands to make informed decisions about product offerings, pricing strategies and marketing campaigns. This data-driven approach leads to better business outcomes and increased ROI.

Assessing a brand’s digital presence

E-commerce has become the lifeblood of modern retail, and for specialty brands, a well-crafted online presence is paramount to success. Investors must carefully examine three key aspects to determine a brand’s digital fitness:

  • E-commerce platform: Evaluate the brand’s e-commerce platform’s user interface, functionality and mobile responsiveness. A well-designed platform with a seamless user experience is crucial for capturing online sales.
  • Digital marketing strategy: Analyze the brand’s digital marketing strategy, including its social media presence, email marketing campaigns and paid advertising initiatives. A strong digital marketing strategy is essential for reaching target audiences and driving online traffic.
  • Data analytics capabilities: Assess the brand’s ability to collect, analyze and utilize customer data to personalize the shopping experience and make informed business decisions. Strong data analytics capabilities are essential for staying ahead of the competition in today’s data-driven retail environment.

Investment opportunities in innovative technologies

Beyond established technologies, innovative approaches are shaping the future of specialty retail. Artificial intelligence (AI) personalizes product recommendations, deploys chatbots for superior customer service and optimizes pricing strategies. Virtual reality (VR) and augmented reality (AR) create an immersive shopping experiences, allowing customers to try on clothes or visualize furniture in their homes virtually. Blockchain technology enhances security and transparency throughout supply chains, facilitates product authentication and powers innovative loyalty programs. Additionally, social commerce empowers brands to sell directly to their followers through platforms like Instagram and TikTok, fostering strong online communities. 

Technology is not a fad; it is a fundamental factor in the success of modern specialty retailers. Before making investment decisions, investors should carefully consider a brand’s digital presence, e-commerce capabilities and commitment to technological innovation. By investing in brands that embrace technology and use it to their advantage, investors can gain a competitive edge and maximize their returns in the ever-changing specialty retail market.

Building a diversified specialty retail investment portfolio 

The world of specialty retail offers investors a variety of opportunities, but navigating the multifaceted industry can be daunting. Diversification is key to mitigating risk and maximizing returns. Here are some strategies for building a balanced and resilient portfolio in the specialty retail space:

Diversification across niche markets

Building a resilient specialty retail portfolio hinges on diversifying your investments across various niche markets within the industry. This approach distributes risk by providing exposure to diverse market trends and mitigating the impact of a downturn in a single niche. 

Furthermore, including a mix of established brands with a proven track record and high-growth potential startups in emerging niches allows for a balance between steady income and explosive growth opportunities. Extending your portfolio globally by investing in brands with international presence or those targeting international markets further unlocks potential high-growth opportunities and diversifies your portfolio across geographical boundaries. By implementing these diversification strategies, you can build a robust and resilient portfolio that thrives in the dynamic landscape of specialty retail.

Balancing risk and reward

  • High-growth vs. Stable brands: Allocate a portion of your portfolio to high-risk, high-reward investments in promising startups or emerging brands. This offers the potential for significant returns but also carries higher risk. Balance these investments with established brands with lower growth potential but a more consistent track record of profitability.
  • Risk management: Implement risk management strategies, such as setting stop-loss orders and diversifying across asset classes, to mitigate potential losses and protect your portfolio from market fluctuations.
  • Constant monitoring and rebalancing: Regularly monitor your portfolio’s performance and adjust your investments to maintain your desired risk profile and asset allocation.

Building a resilient portfolio

When you are investing in specialty retail stocks, prioritizing brands with strong financial fundamentals is crucial. Look for companies with consistent profitability, healthy cash flow and manageable debt levels. These indicators suggest the brand’s ability to navigate market fluctuations and maintain sustainable growth over the long term.

Equally important is investing in brands with a distinct competitive edge. Brands boasting a unique value proposition, a strong brand identity and a loyal customer base are well-positioned to thrive in a competitive environment. These factors differentiate them from competitors and solidify their market presence.

Finally, embracing innovation is essential for long-term success. Consider brands actively incorporating technology and innovation to enhance the customer experience, improve operational efficiency and drive growth. Such brands demonstrate a proactive approach to adapt to changing market dynamics and remain relevant in the ever-evolving retail landscape.

Building a thriving specialty retail portfolio requires careful planning, diversification and a long-term perspective. By following these strategies and conducting thorough research, you can maximize your chances of success and benefit from the exciting opportunities offered by the dynamic specialty retail industry.

5 specialty retail stocks

The specialty retail landscape provides an alluring playground for investors, with diverse brands and enticing growth prospects. However, as the industry undergoes a transformation driven by innovation and shifting consumer preferences, identifying promising investment opportunities requires careful thought and a discerning eye. 

American Eagle Outfitters Inc.

If you’ve been to a shopping mall in the past decade, you may own something from fashion specialty retailer American Eagle Outfitters Inc. NYSE: AEO. American Eagle is a clothing and accessory retailer for young men and women. Its more than 950 American Eagle Outfitters retail stores offer jeans, shorts, shirts, dresses and outerwear, accessories like jewelry and men’s and women’s fragrances. 

In addition to the American Eagle brand, the company also operates the Aerie brand, which offers lingerie, activewear and loungewear for women. Aerie has become known for its body-positive marketing campaigns focusing on inclusivity and diversity. In May 2023, American Eagle had a total market capitalization of $2.56 billion. 

Apple Inc.

While Apple Inc. NASDAQ: AAPL is primarily known for its technology products, it does have a significant presence in the specialty retail sector through its chain of Apple Stores. Apple Stores are specialty retailers because they focus exclusively on selling Apple-branded products and services and offer customers a unique and immersive shopping experience. With a total market capitalization of more than $2.7 trillion in total market capitalization, Apple can be a blue-chip choice for more conservative investors looking for specialty store exposure. 

Home Depot Inc.

The Home Depot Inc. NYSE: HD is the largest home improvement retailer in the United States and the world, with over 2,300 stores across North America and a significant online presence. The company’s stores are a one-stop-shop for all home improvement needs, which has helped to drive customer loyalty. In May 2023, Home Depot had a total market capitalization of $294 billion, making it another specialty blue-chip option. 

Nike Inc.

A multinational corporation known for its sports performance wear and gear, Nike Inc. NYSE: NIKE is among the largest sporting specialty retailers in the world. With 250 retail stores operating in the United States and more than 1,000 international locations, Nike maintains a strong brand presence and customer loyalty around the globe, leading to boosted revenue. In May of 2023, Nike boasted a total market capitalization of almost $200 billion, qualifying it for inclusion in many major U.S. stock indexes. 

Ulta Beauty Inc.

Ulta Beauty Inc. NASDAQ: ULTA is a specialty beauty retailer that dominates a major portion of the beauty industry in the United States. Its chain of more than 1,200 stores across the country provides a series of beauty products, including makeup, skincare, fragrance and beauty tools. Ulta Beauty stores also offer salon services, such as haircuts and styling, as well as makeup and skincare consultations at select locations. 

Ulta stores curate a series of products at multiple price points, ranging from budget brands like NYX to prestigious international fragrance names like Chanel, which has led to increased brand loyalty and repeat customers. In May 2023, Ulta Beauty had a total market capitalization of $25.7 billion, making it one of the largest independently listed specialty beauty retailers. 

How to invest in specialty retail stores

Now that you understand what a specialty retailer is and are familiar with some of the top retailers in popular niches, you might be ready to place a buy order. Here are the basic steps you’ll go through when becoming a specialty retail investor. 

Step 1: Choose a news outlet.

The specialty retail industry is dominated by consumer preferences and trends, which can be volatile and change frequently. Before investing in any retail store, choose a news outlet to keep up-to-date on product launches and new market entries. 

Your specialty retailer may periodically issue press releases on its website, which you should review to make market decisions. You can also bookmark a page like Marketbeat’s Financial Headlines tab to track multiple retailers simultaneously. 

Step 2: Log into your brokerage account.

As you keep track of news and market changes, you can determine an ideal point to buy into the retailer you want to invest in. Log into your brokerage account to begin the buying process. If you still need to get a brokerage account, consider using MarketBeat’s list of the brokerage rankings as a jumping-off point to start your search. 

You may need funding verification before placing a buy order through a new brokerage account. 

Step 3: Place a buy order.

Search for the ticker of the stock you want to invest in using your brokerage account to start placing a buy order. If this is your first time buying shares of stock, we recommend using a limit order to put an upper cap on the total price you’ll pay per share. 

Enter the limit price and the number of shares you want to buy and submit the order. Your broker will execute the order according to the details if and when possible with market conditions. When the broker can complete the order, you’ll see your shares in your account. 

Step 4: Remain proactive.

After your broker closes your order, you can officially call yourself a specialty retail investor. Stay proactive with your investments and monitor how your stocks or ETFs are changing in value over time. If you’re taking a short-term selling position, set a stop-loss order after completing your buy order to minimize loss potential. 

Long-term strategies for specialty retail investment success 

The dynamic and ever-evolving landscape of specialty retail demands a long-term perspective from investors. This rapidly changing industry, susceptible to economic fluctuations and unforeseen disruptions, necessitates strategic approaches prioritizing resilience and adaptability to achieve sustainable success.

Understanding niche markets

In-depth knowledge of individual niche markets is crucial for identifying promising trends, anticipating future shifts and making informed investment decisions. This allows investors to understand the unique dynamics of each market and align their investments with consumers’ evolving preferences.

Prioritizing financial strength

Prioritize brands with strong financial fundamentals, including healthy cash flow, manageable debt levels and proven profitability. These characteristics indicate a company’s ability to withstand economic downturns and adjust to changing market conditions.

Seeking competitive advantages

Look for brands with a unique value proposition, a strong brand identity and a loyal customer base. These differentiators help brands stand out from competitors and ensure long-term relevance and market share.

Identifying growth potential

Consider brands with a clear growth path through market expansion, strategic partnerships, or innovative initiatives. Investing in these brands allows you to capitalize on their future potential and benefit from their expansion.

Mitigating risk through diversification

Diversify your portfolio across various niche markets and investment vehicles. This mitigates risk associated with downturns in any specific market segment and provides exposure to diverse opportunities.

Balancing risk and return

Allocate investments across different risk levels to achieve a well-rounded portfolio that aligns with your risk tolerance. This balances the potential for high returns and the need for stability.

Proactive portfolio management

Regularly monitor your portfolio’s performance and rebalance as needed to maintain your desired asset allocation and mitigate risk over the long term. This proactive approach ensures your portfolio remains aligned with your investment goals.

Building a resilient portfolio

Embrace change and readily adapt your investment strategies to align with evolving market dynamics. This proactive approach helps you thrive in the dynamic specialty retail environment.

Continuous learning and growth

Continuously learn and stay informed about the latest trends, emerging technologies and innovative approaches within the industry. This ensures you remain ahead of the curve and identify new investment opportunities.

By embracing these long-term strategies and adopting a resilient mindset, you can navigate the complexities of the specialty retail landscape and unlock its immense potential. By understanding niche markets, prioritizing financial strength, diversifying your portfolios and continuously learning and adapting, you can build robust portfolios that weather market fluctuations and thrive over the long term.

Consider investing in specialty retail 

Specialty retailers can provide unique exposure to the consumer market, with top names cultivating fan-like customer bases. However, it’s important to remember that while specialty retailers may be highly visible, they make up only a small percentage of the overall market. Use individual retail stocks to complement a fully diversified portfolio to balance growth potential and risk. 


The following are answers to a few last-minute questions you might have about specialty retail stores. 

What is considered specialty retail?

Specialty retail refers to the retail sector that sells a specific range of products or services to a narrow market niche. These stores differentiate themselves from more general retailers, which may carry a wider selection of products or a more diverse range of price points. 

What is a specialty store and examples?

A specialty store is a store that caters to a unique market segment. An example of a specialty store is Restoration Hardware, which offers luxury, contract-grade furniture to upscale clientele and examples. Home Depot and Petsmart are two additional examples of specialty stores.

What are three examples of specialty products?

Luxury watches, organic foods and athletic wear are specialty products. However, depending on the context, a specialty product can be almost anything marketed to an individual customer sector. For example, budget and high-end, handmade furniture can be specialty products. 

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