What is it?
A Category Review is the process by which a retailer assesses the health of a set of products and decides if the assortment of goods should be changed. These are often done on a yearly basis, and there is a window of time where brands can present new items or make the case to defend their existing items with a sell story.
Why is it important?
Retailers will often cut items that are underperforming in velocity. Retailers often pay close attention to their product mix, so unique offerings that might have lower sales can still be attractive if they are incremental to their set. Brands usually approach category buyers during the review cycle to pitch their products. Underperformers get cut, and some of the newly pitched products are put on the shelf.
What are some examples?
- Brands can use category review dashboards and tools to analyze their ranking and performance in a category against the competition, or to find
- Sometimes brands compare one category’s performance to another, which can help make the case for innovation or an argument for more shelf space (e.g., regular soda is in decline, so stock more diet soda).
- Many retailers leverage category reviews in a regular, cyclical fashion to ensure that their product mix is performing at or above their expectations.