SKU Rationalization

David Biernbaum heading a Task Force Group to address retailer’s senior management about (SKU) over-rationalization.

All Clients, Associates and Industry Friends:  

To help reverse the current retail trend for omitting small brands, licenses, specialties and niche products from retail POG’s, I am teaming up with four distinguished colleagues (other consultants and industry leaders) on addressing the topic of SKU “over-rationalization.”  My colleagues have strong backgrounds in economics, consumer behavioral research and retail.

Great news! Firm appointments and meetings are now set with CEO’s, presidents and senior merchandising VP’s at five major national and two major regional retailers. These presentations and meetings will be held in privacy, in off-site locations May through August.

Some of the sub topics to be addressed include:

  • Short and long-term economic implications likely to result from elimination of specialty brands and niche products.
  • Predictable long-term impact on profits that can be anticipated from product assortment “sameness,” retailer to retailer.
  • Consumer behavior and why SKU rationalization might be overlooking certain human elements.
  • Alternative approaches within and outside the process (for consideration).

CM’s, buyers and senior buyers have encouraged me to pursue this process.  Once we succeed in getting the message across at the senior level (I’m confident we will!), rest assured it will help to enable CM’s to re-open certain channels they already know are good for their business.  In some key instances, buyers and CM’s have helped with suggestions on how to arrange for the senior level meetings.

The objective is to motivate the next level of thought and consideration with regards to SKU rationalization and how the process has already had some erroneous results for retailers, with regards to small brands, specialties and niches.  This discussion doesn’t aim to address specific items; however, to help make the points, I do intend to site a few carefully selected examples beyond my client company’s brands.

Consumers want choices; retailers want destination.  We are encouraging retailers to consider using a scalpel, instead of a sledge hammer, in applying the SKU rationalization process.  We have a powerful presentation and we’re excited to advance this purpose to the benefit of retailers, consumers, small brands and our collective client companies.

David Biernbaum & Associates /Australian Dream, TriCalm, and SmartMouth ad, Pg. 54 DSN
David Biernbaum & Associates / Australian Dream Ad, Page 54 DSN
David Biernbaum & Associates / TriCalm write up Page 50 DSN
David Biernbaum & Associates / TriCalm ad Pg. 54 DSN Daily
Australian Dream including Back Pain Cream write up. DSN Daily
Page 54 DB/Australian Dream ad – DSN Daily