310 SKUs cut from a ready-to-wear assortment

Bringing the assortment back into focus

CONFIDENTIAL, a ready to wear house with ten years of trading history, had recorded consecutive years of growth. Its assortment had grown from 150 to 550 SKUs without a consistent framework for product performance.

A capital raise was approaching. A liquidity shortfall was also projected.

Taking aim

We assessed the assortment against sales performance and customer demand. The analysis showed that a large share of the range contributed little to annual sales. Several best selling styles also lacked sufficient inventory and marketing focus.

Taking the shot

The assortment was reduced from 550 to 240 SKUs. Marketing investment shifted towards stronger performing styles. An Analytics Manager role was introduced to support ongoing product decisions. The company also closed ten wholesale accounts and concentrated inventory on ecommerce and retail.

Hitting the mark

Revenue from the best selling item increased by 40% over six months. The revised assortment reduced exposure to slow moving stock and created a clearer framework for managing product performance.

SKU discipline directs working capital towards products that perform.