Most retail catalogues are too large. If 70% of products sell less than one SKU per store per week, the issue is not range depth. It is wasted cost, tied-up cash and avoidable margin pressure.
Every product has to justify its place. It must be verified with suppliers, ordered, received, stocked, priced, distributed, labelled, explained to staff, promoted and eventually cleared if it does not sell. None of that is free.
Poor catalogue control directly affects profitability. Too many weak products create excess stock, higher operating costs and slower execution. A tighter catalogue can improve cash efficiency, reduce markdowns and focus the business on the products customers actually buy.
In many retailers, no single team owns the full discipline of making sure every product earns its place. Buying, merchandising, supply chain, stores and marketing all touch the catalogue, but nobody conducts the whole retail orchestra. That gap is becoming more important as customers use Google, Instagram and ChatGPT to find products. A bloated, poorly managed catalogue does not just create cost. It can make the retailer harder to find and harder to understand.
Reducing the stocked catalogue is one of the practical actions that can help retailers move towards stronger net profit. Less stock. Lower cost. Better margins. More attention on the products that actually serve customers.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
