What advantage do retailers have in a situation where they are the only shop selling a certain product?

Exclusivity provides a significant advantage to retailers in situations where they are the sole provider of a specific product. Being the only store selling a particular item means they can create a unique market position with limited competition. This can lead to higher sales and the ability to set prices without concern for rival retailers undercutting them. Additionally, customers often perceive exclusive products as more desirable, which can enhance the retailer's brand image and attract more business.

In contrast, market saturation would imply that many retailers are competing for the same customer base, ultimately decreasing individual retailer profits. Price wars generally arise in competitive environments where multiple outlets sell similar products, leading to reduced margins. Brand loyalty reflects an established emotional connection consumers have to a brand, but in this context, the exclusivity of the product is what primarily drives customer interest and sales for the retailer.