Gartner Research

Retail Assortment Rationalization Falls Short; Optimization Delivers Sales and Profits

Published: 30 September 2014

ID: G00231837

Analyst(s): Robert Hetu

Summary

Assortment rationalization has failed to deliver desired outcomes and has been known to negatively impact sales and customer perception. Assortment optimization is required to ensure multichannel retailers present profitable and productive assortments that satisfy customers.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Marketplace pressures cause multichannel retailers to expand assortments, frequently growing inventory investment without corresponding sales growth
  • Retail merchandisers use rationalization to control assortment breadth, but this is an imperfect action that causes customer disenfranchisement
  • Multichannel retailers can use enhanced analytics to optimize assortments and drive customer centricity

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