Limited-assortment supermarkets aim to cut costs by:

Limited-assortment supermarkets focus on cutting costs primarily by carrying smaller amounts of products. By narrowing their selection, these stores can simplify operations and reduce inventory costs. This strategy allows them to focus on high-turnover items, which can lead to greater efficiency in stocking and managing inventory. Additionally, fewer products mean that these supermarkets can often negotiate better prices with suppliers and offer lower prices to customers, creating a competitive edge in the market.

On the other hand, carrying the maximum number of products would typically increase costs related to inventory management, storage, and spoilage, which contradicts the limited-assortment model. Offering high-end gourmet items is not aligned with the cost-cutting focus of limited-assortment supermarkets, which usually prioritize affordability over premium options. Catering to niche markets involves specialized products that may not support the broad, cost-efficient strategy crucial to limited-assortment supermarkets and often requires a wider variety of items to attract specific consumer segments.