One aspect that has emerged in the past days is that Tesco now thinks it has far too many SKUs. The range has apparently growth by 31% in the past 18 months, if Dave Lewis is quoted correctly here (£)
A common problem for both retailers and brand owners. SKU numbers rise and just have to be culled from time to time, in a clearly targeted exercise.
It's all very well talking about the 80:20 rule, but, under pressure, no business wants to lose customers because they haven't got the particular item being sought.
Some thoughts:
1. maintain a 'one in, one out' policy with npd
2. have a cull of SKUs every 12 months
3. maintain a clear quantified focus on low selling SKUs and demonstrate how little business they account for, as part of regular internal reporting
A common problem for both retailers and brand owners. SKU numbers rise and just have to be culled from time to time, in a clearly targeted exercise.
It's all very well talking about the 80:20 rule, but, under pressure, no business wants to lose customers because they haven't got the particular item being sought.
Some thoughts:
1. maintain a 'one in, one out' policy with npd
2. have a cull of SKUs every 12 months
3. maintain a clear quantified focus on low selling SKUs and demonstrate how little business they account for, as part of regular internal reporting
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