In a range, each item represents a percentage of the total sales. If we calculate the sales contribution of each item, sort them from the largest contribution to the smallest, and add up the sales contribution to the previous one, we have a Pareto visualization of the Assortment Effectiveness. We then realise that just a few items make up for most of the sales (the famous 80/20 rule).
The less there are items with minimal sales contribution, the more the Assortment is effective. Because its space is limited, the retailer will always be looking for low-performing items (i.e. with very low sales contribution) to delete. If suppliers know some of its items are in this case, they should either review their Retail Mix or be ready for de-listing.
🖥️ Make it happen in Ariane
How to access Assortment Effectiveness in Ariane4S: 3 Simple Steps
Step 1: Select the Pareto Menu in the Range Menu Bar.
Step 2: Select Option in the Filter Menu and choose the KPI, hierarchy level and Promotion filter you want to measure.
Step 3: Select the period you want to measure.
And here it is.