The Short- and Long-Term Impact of an Assortment Reduction on Category Sales
In a collaborative study with a major Dutch retailer, the authors assess the short- and long-term effects of a 25% item reduction on category sales. On an aggregate level, a major assortment reduction can lead to substantive short-term category sales losses but only a weak negative long-term category sales effect. Short-term category sales losses are caused mainly by fewer category purchases by former buyers of delisted detergent items. However, the results also show that the assortment reduction attracts new category buyers. These new buyers partially offset the sales losses among former buyers of the delisted items. The collection of supplemental process data on assortment perceptions and actual search time in the test stores before and after the assortment reduction provides evidence that delisting results in an increase in perceived search efficiency and a decrease in actual search time.
|Keywords||assortment management, assortment reduction, business losses, choice complexity, marketing effects, retail trade, retailing, sales accounting, special sales, stores (retail)|
Sloot, L.M., Fok, D., & Verhoef, P.C.. (2006). The Short- and Long-Term Impact of an Assortment Reduction on Category Sales. Journal of Marketing Research, 536–548. Retrieved from http://hdl.handle.net/1765/11409