Range Optimisation & SKU Rationalisation

Range Optimisation & SKU Rationalisation

Working with a premium high street greeting cards and stationery retailer to improve their optimal product range.

To discuss how we can help you with similar challenges, please contact Jeremy Smith.

The Problem

  • As a result of frequent range changes and lack of clear exit policy, the retailer had a long tail of items across all product categories.
  • The 4C team was tasked with removing at least 50% of the range and suggesting an optimal range to drive sales and margin, as well as improve availability of core lines.

The Solution

  • We analysed the performance of each SKU within individual categories, stripped the product ranges down and then built them back up using a ‘bottom up’ approach.
  • Concurrently we benchmarked the incumbent ranges with key competitors and highlighted areas where the business was over or under ranged in terms of product options and brands volume.
  • Using this insight, a proposal was made for the optimal number of SKUs within each product category to maximise sales and margin.

The Impact

  • The in-depth review led to over 8,000 SKUs being flagged for deletion from future ranging, improving future sales and margins without negatively impacting the customer.
  • Subsequently COGs were reduced as a result of higher volume.
  • The smaller range led to continuous operational benefits in terms of ordering, stock holding, visual merchandising and ultimately an enhanced shopping experience for customers in-store.
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