What type of store caters to the needs of a narrow group with a limited number of merchandise categories?

The type of store that caters to the needs of a narrow group with a limited number of merchandise categories is a specialty store. Specialty stores focus on a specific product line or niche, offering a curated selection of items that appeal to a particular demographic or interest group. This focused approach allows them to provide expert knowledge, personalized service, and a unique shopping experience related to their offerings.

For example, a specialty store may sell only outdoor sporting equipment or only high-end skincare products, which enables them to target customers who have specific needs or preferences in that category. This specialization contrasts with department stores, which carry a wide variety of merchandise across multiple categories, supermarkets that offer extensive grocery items, and convenience stores that stock a limited range of everyday products, usually aimed at convenience rather than niche markets.