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Category Captains: Drop Your Weak SKUS

Category Captains: Drop Your Weak SKUS

De-listing poor performing SKUs is one of the most important responsibilities of a category captain. The process can be difficult though if it involves eliminating SKUs from your own range.

Even though you may feel un-loyal to your brand, it is vital to eliminate any SKUs that are taking up valuable space on the retailer’s shelf. By taking down poor performing SKUs from your own range, it sends a clear message that you are trustworthy and are committed to growing the category.

With over 200 categories in a typical supermarket, retailers rely heavily on the advice of category captains to manage the space allocation, pricing and promotion of assigned categories. Without the assistance of manufactures, retailers would find it difficult to make basic decisions on issues such as ranging.

Contrary to what many would think, decreasing the options available to consumers can actually increase sales. Consider the case of Danone who worked with an Italian retailer on their yoghurt category.  After reviewing the sales figures for all brands, Danone recommended to reduce the range by 40%. Following the downsizing by the retailer, sales went up by 40% .

Too much choice can confuse consumers and make it difficult to come to a purchase decision. By eliminating poor performing SKUs, category captains can simplify the purchase process for consumers. Not only can retailers increase sales with a smaller range, they can also save costs associated with warehousing and distribution

”By eliminating poor performing SKUs, category captains can simplify the purchase process for consumers.”

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