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Brand and stock-keeping-unit (SKU) assortments, assortment changes and category sales

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Abstract:

This study examines how brand and stock-keeping-unit (SKU) assortments affect category sales across a large number of categories over two time periods in which brand and/or SKU assortments were changed in two retail outlets. It uses store range records and sales data from a retailer who primarily added or deleted entire brands in one outlet and primarily added or deleted SKUs within brands in a secondoutlet. Categories with a greater number of SKUs achieved relatively higher sales revenue. Categories which increased assortments also increased sales. A partitioning of categories into groups undergoing distinct patterns of assortment additions and deletions reveals that categories that underwent additions only, especially brand additions, experienced the highest levels of sales increase.

Keywords: SKUs; assortment changes; assortments; brands; category

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/09593969.2011.562682

Affiliations: 1: School of Marketing & International Business, Victoria University of Wellington, New Zealand 2: School of Marketing, University of New South Wales (UNSW), Sydney, Australia

Publication date: May 1, 2011

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