What Is an Assortment Strategy?
Let me explain what an assortment strategy really means in retail. It's the approach you take to decide the variety and depth of products you offer in your stores, all aimed at optimizing sales and matching what consumers want. You might hear it called a product assortment strategy—it's essentially a tool retailers use to manage and boost their sales.
This strategy breaks down into two main parts. First, there's the depth: that's how many variations of a specific product you carry, like different sizes or flavors of the same item. Then there's the width, or breadth: that's the number of different types of products you have overall.
Key Takeaways
- An assortment strategy is a strategic retail tool that optimizes the variety of goods for sale.
- It centers on deep assortments and wide varieties.
- It started with brick-and-mortar stores but now works well in e-commerce too.
How Assortment Strategies Work
At its core, a product assortment strategy is a sales tool in retail, built around depth and breadth. But remember, not every retailer can handle both at once. You'll need to tailor it with sub-strategies that fit your store's specific needs and goals.
If you go for a deep assortment—unlike a narrow one—you're carrying multiple variations of one product. A wide variety—opposite of narrow—means stocking a lot of different product types. Keep in mind, this isn't a one-size-fits-all deal; you have to customize it to your business parameters.
A Challenge for Small Stores
Retailers like you face a real trade-off here. If you try to offer both a wide variety and deep assortment, you need a ton of space—think big-box stores. Smaller spots might specialize in one product type, giving customers options in colors and styles, or go deep on products but keep the variety narrow. That's why a place like 7-Eleven might stock just one brand of canned cat food, while a bigger chain like Kroger could handle 12 brands if they wanted.
A Brick-and-Mortar Term
Originally, assortment strategy was all about physical stores, where depth and breadth tied into space and how customers interact with products hands-on. But now, every sales channel—physical, hybrid, or pure online—uses versions of this strategy to get an edge over competitors.
Adjusting for Demographics
You can fine-tune your assortment by grouping items that appeal to specific customer types, targeting demographics directly. For instance, if you're aiming at new parents, stock up on trendy infant clothes, toys, bedding, and other essentials they need.
A Strategic Selling Tool
A well-planned product assortment can upsell customers on extra items while they're shopping for what they came for. By strategically placing related products together, you encourage impulse buys—whether they're necessities or not.
Think about putting garden hoses next to sprinklers and lawn-care stuff; it might add more to the cart. Or set up a fancy patio dining set amid basic yard products to draw people to housewares. Even displaying flashlights with batteries nearby, or putting batteries at checkout, reminds customers what they need to make it work.
Potential Disadvantages of Assortment Strategies
Sure, deep assortments can draw in customers, but there are downsides if you rely on this alone. If you place items wrong, demand can swing wildly. Mixing less-popular stuff with hits might hurt the appeal of the good ones. And if the assortment is too huge, customers struggle to find what they want—too many options can overwhelm them and kill engagement.
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