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Assortment Optimization
Definition
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.
How It's Calculated
Example
A category team conducts assortment optimization and expands distribution of high-growth protein bars while discontinuing slow-moving SKUs.
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