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March 17, 2010


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Jeff Fisher

Great article, but I think the science applied in retail for SKU management is not good. It is one-dimensional, and that is why it misses the mark.
Product relationships are key to managing the SKUs in retail - store or e-commerce. That means - what SKUs are bought together in high propensity, and what are the lone singles. Walmart would not have lost 1.6% incomp store sales if this were done with the right science.
I do not argue that art is required. But I think the science is not good enough! Hence Walmart has to bring back the SKUs they cut.
What a waste of time, effort and lost opportunity!


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