Stores don’t sell your favorite product anymore. That’s on purpose | CNN
In today’s fast-paced consumer world, less is becoming more! Big brands like Hormel, Levi’s, and Dollar General are turning heads by cutting down on the variety of products they offer. Remember when the grocery aisle was bursting with pepperoni choices? Hormel used to sell a whopping 71 types of pepperoni. But now, they’re scaling back by removing or consolidating about 25% of their offerings. Why? It’s all part of a strategy called “SKU rationalization” to simplify choices and boost profits. Turns out, a small percentage of top-selling items drive most of a company’s revenue, while niche products can pile up costs without adding much to the bottom line.
This trend of trimming options isn’t limited to the food aisle. Iconic brands across different industries are in on the act. Levi’s reduced its clothing range by 15%, focusing on direct sales through its own stores and website. Dollar General cut around 1,000 products from its shelves to simplify shopping for customers (and reduce the hassle of restocking!). Even Hasbro, the toy titan, has slashed about half of its offerings, citing the high cost of producing versions tailored for different regions. For companies, fewer choices mean lower advertising, distribution, and supply chain expenses, allowing them to zero in on core, profitable items.
What triggered this shift? Partly, it’s a response to the economic rollercoaster brought on by the pandemic. With supply chains jammed up and inflation driving prices sky-high, companies focused on their best sellers to keep up with demand. Plus, as prices went up 26% since 2020, brands knew they couldn’t just keep raising prices without losing customers. So, they got creative—cutting products instead of hiking costs to keep customers engaged without overwhelming them with choices.
But don’t think this strategy is without risks. While some shoppers may appreciate simpler options, others miss their favorite niche products. And the consequences of over-trimming can be costly. Take Taco Bell’s Mexican Pizza fiasco or Walmart’s infamous 2009 attempt at reducing shelf clutter. Both companies faced customer backlash, with Taco Bell eventually bringing back its fan-favorite dish after a huge petition. When it comes to consumer choice, companies realize they need to tread carefully—some decisions, once cut, can leave a bitter taste………..
[read more]
Rising Dough
As companies scale back on variety to protect profits, how might this shift in strategy impact consumer loyalty and brand image? In a world where less is becoming more, are we witnessing a new era of minimalist marketing or just a temporary trend?
*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.
☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!**
Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟
Share this content:
