Item Deletion Analysis helps retailers determine which items to remove from the assortment. Using fact-based analysis, retailers can better understand product sales, the productivity of all items in the assortment and a product's relationship with other products.
The process used to determine which items should be deleted from the assortment varies by industry segment, the retailer's sophistication, the company's internal buying/merchandising processes and the amount of analytical information available.
With Item Deletion Analysis, a retailer can identify and keep the most profitable items in the assortment. When new products are added, their performance can be quickly assessed. In addition, retailers can -
- Remove unprofitable items from the assortment
- Decrease the breadth of the assortment
- Reduce the capital tied up in unproductive inventory
- Reduce planned markdowns
- Introduce the right new items into the category