top of page
SKU Rationalization
Definition
The process of evaluating a product assortment to determine which SKUs should stay, be added, or be removed based on performance, profitability, and retailer strategy. SKU rationalization helps optimize shelf space and improve category productivity.
How It's Calculated
Example
During a quarterly SKU rationalization review, a retailer discontinues two slow-moving flavors while expanding distribution of the brand’s top seller.
Can't find what you're looking for? Suggest a term.
bottom of page