Before the transition of our economy to market relations, the retailer had no problems determining the optimal assortment. There was one task - to fill the shelves with at least something. Therefore, the understanding and application of the term “assortment matrix” came much later - through losses, utilization of expired products, overflow of stock balances with bad positions. Those who survived and developed in time realized that without a constant analysis of the activities and computerization of the trading process, you will not last long on the market.
If you do not take into account the complexity of foreign terms, the assortment matrix of the store is a list of goods whose presence on the shelf and in minimal minimum balances in the warehouse is mandatory. Before compiling it, the store’s strategy, its target consumer, age, and income level are determined. If it is decided to position the store as a discounter with low prices, then including elite whiskey in its matrix does not occur to anyone in the same way as making inexpensive stamped wheels for wheels is an accompanying product for the salon of expensive foreign cars.
It is compiled by product groups. Each SKU (assortment item) is included in the matrix based on the analysis. The average period of unit turnover, the target segment of consumers who prefer this position, possible analogues, suppliers are determined.
It often happens that the same product is offered by competing suppliers. For the retailer, this situation is beneficial: the purchase is made from the supplier who has offered the lowest price and favorable terms of delivery and payment. This encourages the second supplier to offer even more favorable terms.
What is the balance of the range for?
It is the responsibility of the manager or other person who works with suppliers to constantly monitor stock balances. Among other benefits, the assortment matrix avoids abuse by sales staff. It happens that an unscrupulous supplier, using the manager’s personal interest in the purchase, sells to the retail outlet a slow-moving product or a running product, but in an amount that exceeds the normal need of the store.
If there is an approved assortment matrix, ordering a product that is absent in it (or obviously more than the minimum stock) is a noticeable violation that neither the manager nor the supplier will commit.
Today, a market retailer, in order to stay on the market, is forced to respond quickly to all changes, so the assortment matrix is not a stiff dogma. Every employee of the enterprise should know it. To do this, a periodic analysis of the store’s turnover and the formation of the assortment matrix is done, and this process is constant and continuous.
If some SKU ceases to be sold (the price has increased, the quality has decreased, the preferences of the main category of customers have changed), it is quickly replaced by a more popular analogue. The external environment is monitored (the appearance of competitors, housing construction within the radius of influence of a point, changes in the economic environment of the city), and matrix adjustments are made based on its results.