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

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

Document Type: Research Article

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: 2011-05-01

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