Across the globe, there are structural challenges with assortment across most CPG categories. A majority of SKUs in key categories contribute to less than 2% of overall category sales. COVID-19 has strengthened the case to reassess consumer expectations on the range of products available in brick and mortar, and to rationalize the depth of assortment on-shelf.
But it is not just about reducing SKUs. A more sophisticated approach is needed. Richard Cook, Analytics Leader at NielsenIQ, talks about the necessity to streamline product portfolios to make sure everyone wins: the shopper, the manufacturer, and the retailer.