CPG Terms Defined

The operational process of implementing a new planogram or category update in stores, including moving shelves, adjusting facings, setting new items, and removing discontinued SKUs. Effective reset execution ensures the shelf reflects the retailer’s authorized assortment.

The process of evaluating and adjusting a product assortment to maximize sales, profitability, and shopper satisfaction. Assortment optimization balances SKU productivity, consumer trends, and retailer strategy to determine the ideal mix of products.

The removal of a product from a retailer’s assortment due to low performance, redundancy, supply issues, or category strategy changes. SKU deletions help streamline assortments and improve shelf efficiency.

The ongoing process of updating and correcting product information in a retailer’s or distributor’s item file. Item maintenance ensures data accuracy for pricing, pack changes, new UPCs, discontinued SKUs, cost updates, and logistics attributes.

The set of SKUs a retailer has approved for distribution within a specific store or region. The authorized assortment defines which items should be carried and supported in planograms, ordering systems, and store-level execution.

The rapid increase in the number of SKUs within a category or brand lineup, often driven by line extensions, flavors, pack sizes, or seasonal items. While intended to capture more consumer demand, excessive SKU proliferation can strain supply chains, reduce shelf efficiency, and dilute productivity.