Traditional Grocers Can Benefit from Understanding Consumer Assortment Perceptions
In the face of heavy competition from alternative format retailers such as Wal-Mart, traditional grocers seeking survival strategies may employ "efficient assortment" without negatively impacting customers' perceptions as they have long feared, says a group of marketing professors at the University of Texas at Austin.
Suggesting that the potential risk inherent in item reduction is more limited than thought, the UT researchers find that moderate reductions in the number of items carried can be made, as long as only low-preference items are eliminated and the category space is held constant.
The benefits of efficient assortment include reduced warehouse inventories, carrying costs, and space occupancy costs.
Contact: Susan Broniarczyk, 512/471-5423, [email protected]
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