Wal-Mart to reduce number of product lines
Wal-Mart in the US plans to reduce the number of product lines it carries as part of a greater drive towards efficiency. The retailer reportedly plans to cut its SKU count by up to 15% in order to dedicate more shelf space to its top-selling or fast-moving items. Wal-Mart’s UK division, Asda, recently removed approximately 30% of SKUs in a similar move towards rationalisation. "Our ‘Less is More’ campaign has been very successful and we are sharing that learning with Wal-Mart," stated Asda Chief Financial Officer, Judith McKenna. Asda’s Chief Merchandising Officer Darren Blackhurst added that some suppliers had been against the move but had benefited from more sales in areas where products had been thinned out. "Our job is to provide the right range for customers," said Blackhurst. "Does that create tensions? Yes, but it enables us to get lower prices on core essentials and grow local ranges."
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