December 2010
Intermediate to advanced
300 pages
5h 59m
English
book
Competing in Tough Times: Business Lessons from L.L.Bean, Trader Joe’s, Costco, and Other World-Class Retailers
by Barry Berman
Content preview from Competing in Tough Times: Business Lessons from L.L.Bean, Trader Joe’s, Costco, and Other World-Class Retailers
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Chapter 3. Low-Cost Strategies II: Delivering Low Costs Through Minimizing Product Proliferation
The second part of a retailer’s cost containment strategy deals with product proliferation. Too many retailers offer way too much choice in terms of brands, sizes, and varieties. Poor store profitability is often associated with product proliferation due to a retailer’s allocating too little space to its most profitable products (that have high inventory turnover or high profit margins) and too much space to products that really don’t sell that well (even though they may be partially supported through vendor allowances). Too much inventory also requires larger store formats with higher rental and utility costs.
The issue of product proliferation ...
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