The number of SKUs in stores has tripled since the 1980s – but sales have not grown at the same pace. Now, many retailers are reducing the vast number of products and pack sizes offered in-store in an effort to create a more streamlined shopping experience, simplify supply chain logistics, and reduce out-of-stocks. As a result, shelf space is increasingly constrained.
This shift creates greater pressure for consumer packaged goods organizations (CPGs) to optimize their in-store assortment. With fewer items on the shelf, CPGs must be as strategic as possible with the products they do offer. Quantifying the impact of each assortment change will help organizations make smarter decisions about which products to prioritize to fuel growth.