The perfect mix - fact based assortment optimization

György Szilégyi
MEMRB Retail Tracking Services, Hungary

INTRODUCTION

A retailer's ability to offer the “right” mix of products to its customers is obviously a vital success factor. The confusingly high number of products that are available in the marketplace is likely to grow even further with Hungary's EU membership. Even hypermarkets with seemingly endless shelf space are able to present only a tiny part of all the products that the market has to offer. Common sense dictates that retailers should make a careful selection of those products that should make it to the shelves in their stores.

Failing to include important products in the assortment will result directly in lost sales and indirectly in decreased customer loyalty. Including marginal products in the assortment, on the other hand, will lead to an increase in logistic and inventory costs as well as inefficient use of shelf space.