RetailWire: Are retailers getting over their SKU management hurdles?

“Hurdle rates alone are actually a really narrow constraint, though there are still plenty of retailers that just draw a line in the sand, and if you’re above that, you stay in distribution,” said Don Stuart, managing director, Cadent Consulting. “But more sophisticated, progressive retailers are moving beyond simply ranking items or utilizing the 80/20 rule and applying more advanced metrics. They’re factoring in whether an item is adding true variety, growth trends, gross margin return on investment, if it offers true incrementality, etc.”

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