I would agree that it seems like overkill. You might expecting shop.example.com/products, but not shop.example.com/shop.
It seems to me that your homepage would target that keyword anyway, so you'd be better off with something a bit more user friendly that potentially targets an additional keyword, e.g. www.bluewidgetrepairs.com/services to also target blue widget repair services.
The value of keywords in a filename is not that high anyway for an engine like Google, whereas the benefits to usability in having shorter, more succinct URLs are tangible - that's my opinion at least.