fincash logo SOLUTIONS

Fincash » Assortment Strategy

What Is an Assortment Strategy?

Updated on April 7, 2024 , 392 views

Also known as a product assortment strategy, in retailing, an assortment strategy comprises the type and number of products that stores display to be purchased by customers. This one is a strategic method used by retailers to regulate and increase their sales.

Assortment Strategy

Basically, an assortment strategy is made of two significant factors:

  • The depth or variations of one product that the store offers
  • The width or different types of products that the store offers

Understanding the Assortment Strategy

Fundamentally, an assortment strategy is used as a sales tool in the retail Industry, along with the concepts of breadth and depth. However, using this profound strategy is not the cup of everybody’s tea.

Considering the strategy can have an array of layers of related and sub-strategies, every store will have to customize it in order to address specific objectives and requirements. Also, the strategy works differently for each retailer.

For instance, the ones who have small stores may experience a trade-off. Selecting a deep assortment and a wide variety of products need a massive storage space, which is an issue for small store owners.

Thus, the ones with small spaces may choose to concentrate on a specific type of product and offer a variety of styles and colours. On the other hand, others may provide a deeper product assortment but a narrow variety.

Originally, the strategy was only reserved for brick-and-mortar stores because the components of breadth and depth concerned only physical space and visual interaction between the product and the consumers.

However, of late, the strategy is being used online by a gamut of retailers to acquire a competitive edge. It is possible for retailers to fine-tune their strategies by grouping appealing items together to target a specific demographic of consumers. For example, if a seller wants to attract youngsters, they might shelf gadgets from latest brands along with accessories and other equipment.

Ready to Invest?
Talk to our investment specialist
By submitting this form I authorize to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Drawbacks of Assortment Strategies

Sure, the product assortment strategy might help attract a handful of customers. However, there are certain drawbacks that retailers face if they only rely upon this method. Some of the disadvantages are mentioned below:

  • If items have been placed in an incorrect manner, the demand will vary to a great extent. For instance, if popular products are mixed with not-so-popular products, the latter may distract the customers’ appeal.
  • Or, if the assortment is too broad, customers may face issues finding the product they are looking for.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?