The thing is supermarkets can cross subsidise and sell BD's as loss leaders. Something a specialist retailer can't do. One problem specialist retailers have is the high rents they pay. Mothercare reported profits today and they've seen a 70% fall in profits. A lot of their leases are up for renewal soon and they've said they won't be renewing their leases for the majority of their stores and pulling out of the highstreet altogether, preferring the out of town sites.