Product Assortments & Merchandising
Should it stay or should it go? While a seemingly straightforward question, today's merchants are as pressed as ever to simplify excessive product variety, pull underperforming SKUs, and identify new products to bring to market. Insights don't come easily. Merchants must be wary of pulling a low turning SKU to which high value customers may be very loyal. Approximately 80% of all new products fail or drastically underperform. Merchants use Test & Learn™ to overcome these challenges and improve assortment and merchandising initiatives on a daily basis, addressing questions, such as:
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How does a new product perform? What cannibalization and halo effects are associated with the new introduction?
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Which customer segments respond most positively to new products? Are there opportunities to profitably execute targeted marketing associated with the rollout of a new product in specific stores or markets?
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How loyal are high lifetime value customers to each product in an assortment? Have they demonstrated a willingness to substitute with competing products, or do customers who buy these product always return for the same SKUs?
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What is the profit impact of resetting category "x" net of all effects? What impact does the reset have on customer satisfaction?
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Which low sales SKUs are frequently found in my largest baskets?
Click here to read about how leading retailers used Test & Learn for Sites™ and Merchandise Optimization to improve ROI in the Aisle Redesign Case Study, Space Optimization Case Study, and Private Label Strategy Case Study.
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