The range review process is the process by which the Retailer is reviewing the performance of its range, compares it to the budget, and integrates customer trends to identify what are the required changes in its Range to increase its performance.
It is critical for Buyers and Manufacturers to share a common knowledge of the process itself, as well as the performance criteria considered, to jointly take the best decisions.
💡Factors to be considered for Range Review
To compare the sales performance of an SKU with the overall performance of the Category to see whether the SKU overperforms or underperforms to other products.
The review process should be done from the minor level of the category hierarchy to the biggest, for example, Segment > Sub-Category > Category > Category Group > Division.
The role of the Category is also an essential factor in the Range review process. For example, Category A is being assigned by the Retailer as a seasonal role. The retailer needs to analyze how the range covers customer needs during a particular season. Also, during the rest of the year, a Retailer can optimize their product range and provide enough space for other category products on shelves.
It helps the Retailer determine the type of specific products they can implement in the store based on the Category Strategy (Drive traffic, generate cash flow, drive transaction, generate margin).
Taking seasonality as a consideration factor will help Retailers to determine how many times to review range within a year. For example, Retailers will sell more sweaters in the textile category during winter than in summer. Therefore, one must check the product range as the seasons change, or new trends appear.
❓What is Range Review Process used for
Having an effective range review process is an opportunity for both Retailers and Manufacturers to positively develop their working relationship and grow their category so both parties can benefit from the improvement of the shopper’s experience.
- Better Planogram display
- Maximize the shelf space to display more top-selling products.
- Assortment optimization - Improve the efficiency of shelves space by discontinuing slow-moving products and replaced with new ones.
- Optimizing Retailer's inventory levels, by ensuring the right products are in stock at the right time. This can reduce the risk of overstocking or understocking.
- Set optimal product pricing by analyzing market trends, competitor pricing, and customer price sensitiveness.
- Build better relationships with Manufacturers by providing valuable feedback and insights about their products performances.