Product Categories Supporting Option Breadth

Why do grocery stores often carry over 100 options for both cheese and wine — but just a handful for pasta?

In this post, we explore the economic forces behind that imbalance, highlighting four key traits that determine whether a product category can realistically support a broad assortment. To test the framework, we review assortments across various industries and find that it aligns closely with what we observe in practice.

Effective inventory management always depends on a clear understanding of supply and demand. The framework we outline here can help to qualitatively guide assortment breadth decisions in your business — supporting growth while minimizing waste.

…READ MORE