Seafood retailers take note: A lack of variety could drive customers away.
A recent report from The Nielsen Co. showed that more than half of U.S. consumers say they are likely to shop elsewhere if they notice a reduced product selection.
In contrast, 40 percent of retailers say they plan to shrink their product assortment, cutting out up to 10 percent of their SKUs.
However, only 7 percent of consumers have noticed any reduction in product variety.
“Reduced assortments are definitely here to stay, and the message to retailers is to choose carefully when it comes to deciding which products to trim. In many cases, strategically reducing assortment can result in an improved customer experience and greater profitability. Cut the wrong product, however, and the potential customer backlash could be costly,” said Stuart Taylor, Nielsen’s VP of custom analytics.
“Success in today’s competitive retail market is no longer about having the most products — it’s about finding the right mix of products,” he added. “Retailers should be focused on offering the products their customers want most and making it as easy as possible for their customers to find and purchase those products.”
Nielsen surveyed nearly 50 retailers across the United States and consumers in more than 21,000 U.S. households online in March and April 2010. The company also conducted an industry assortment benchmark analysis.
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