Optimising Assortment Performance & Reducing Inventory Complexity
SKU rationalization helps retailers focus on high-performing products while eliminating slow-moving, low-value, or redundant SKUs. A structured SKU rationalization process improves sales efficiency, reduces carrying costs, and simplifies store operations.
The SKU Rationalization Checklist ensures data-driven decisions are consistently applied across categories and stores.
SKU Rationalization Checklist
Sales Performance Impact
1. Is the SKU generating consistent sales volume?
☐ Yes
☐ No
If No, Reason: ________________________________________________
2. Is the SKU contributing positively to category revenue?
☐ Yes
☐ No
If No, Reason: ________________________________________________
3. Has the SKU met minimum sales benchmarks?
☐ Yes
☐ No
If No, Reason: ________________________________________________
4. Is the SKU selling regularly without long idle periods?
☐ Yes
☐ No
If No, Reason: ________________________________________________
5. Is the SKU contributing to basket value or cross-sell?
☐ Yes
☐ No
If No, Reason: ________________________________________________
Inventory Efficiency Impact
1. Does the SKU maintain healthy stock turnover?
☐ Yes
☐ No
If No, Reason: ________________________________________________
2. Does the SKU avoid frequent overstock or ageing inventory?
☐ Yes
☐ No
If No, Reason: ________________________________________________
3. Is the SKU free from repeated near-expiry or expiry issues?
☐ Yes
☐ No
If No, Reason: ________________________________________________
4. Is the SKU easy to replenish without supply disruption?
☐ Yes
☐ No
If No, Reason: ________________________________________________
5. Does the SKU justify its storage and handling cost?
☐ Yes
☐ No
If No, Reason: ________________________________________________
Category & Assortment Impact
1. Does the SKU add meaningful variety to the assortment?
☐ Yes
☐ No
If No, Reason: ________________________________________________
2. Is the SKU differentiated from similar products?
☐ Yes
☐ No
If No, Reason: ________________________________________________
3. Does the SKU align with category strategy?
☐ Yes
☐ No
If No, Reason: ________________________________________________
4. Is the SKU relevant to customer demand in this store?
☐ Yes
☐ No
If No, Reason: ________________________________________________
5. Does the SKU complement core category products?
☐ Yes
☐ No
If No, Reason: ________________________________________________
Shelf & Space Impact
1. Does the SKU justify its shelf space allocation?
☐ Yes
☐ No
If No, Reason: ________________________________________________
2. Is the SKU contributing to shelf productivity?
☐ Yes
☐ No
If No, Reason: ________________________________________________
3. Is the SKU frequently picked up by customers?
☐ Yes
☐ No
If No, Reason: ________________________________________________
4. Is the SKU easy to merchandise and replenish?
☐ Yes
☐ No
If No, Reason: ________________________________________________
5. Would removing this SKU improve shelf clarity?
☐ Yes
☐ No
If No, Reason: ________________________________________________
Strategic & Brand Impact
1. Does the SKU align with brand positioning?
☐ Yes
☐ No
If No, Reason: ________________________________________________
2. Is the SKU part of future category or brand plans?
☐ Yes
☐ No
If No, Reason: ________________________________________________
3. Is the SKU supported by marketing or promotions?
☐ Yes
☐ No
If No, Reason: ________________________________________________
4. Is the SKU relevant to target customer segments?
☐ Yes
☐ No
If No, Reason: ________________________________________________
5. Is there a clear decision to retain, replace, or delist the SKU?
☐ Yes
☐ No
If No, Reason: ________________________________________________
