Assortment Strategy

AAA

DEFINITION of 'Assortment Strategy'

The number and type of products displayed by retailers for purchase by consumers. The two major components of an assortment strategy are the depth of products offered (how many variations of a particular product a store carries), and the width of the product variety (how many different types of products a store carries).


A deep assortment of products means that a retailer carries a number of variations of a single product (the opposite being a narrow assortment); a wide variety of products means that a retailer carries a large number of different products (the opposite being a narrow variety).

INVESTOPEDIA EXPLAINS 'Assortment Strategy'

Retailers face a trade-off when determining an assortment strategy. Choosing a wide variety and a deep assortment simultaneously requires a large amount of space, and is typically reserved for big box retailers. Stores with smaller spaces may choose to specialize in a certain type of product and offer consumers a variety of colors and styles, while others may offer a deep assortment of products but a narrow variety (convenience stores, for example).

RELATED TERMS
  1. Brick And Mortar

    A traditional "street-side" business that deals with its customers ...
  2. Big Box Retailer

    A retail store that occupies an enormous amount of physical space ...
  3. Hypermarket

    A retail store that combines a department store and a grocery ...
  4. Retail Sales

    An aggregated measure of the sales of retail goods over a stated ...
  5. Online-To-Offline Commerce

    A business strategy that draws potential customers from online ...
  6. Donation-based Crowd Funding

    Donation-based crowdfunding is a way to source money for a project ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Fundamental Analysis

    Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.
  2. Fundamental Analysis

    The 4 R's Of Investing In Retail

    In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.
  3. Fundamental Analysis

    Inventory Valuation For Investors: FIFO And LIFO

    We go over these methods of calculating this component of the balance sheet, and how the choice affects the bottom line.
  4. Markets

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  5. Fundamental Analysis

    Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.
  6. Options & Futures

    Find Investment Quality In The Income Statement

    Use these key attributes to uncover top-level investments.
  7. Investing

    Is J.C. Penney Fighting An Uphill Battle?

    J.C. Penney's revenue is once again on the ascent, its free cash flow is closing in on positive territory, and its gross margin has rebounded sharply.
  8. Entrepreneurship

    Go To College Or Become An Entrepreneur?

    The rising cost of higher education and high unemployment rate following the Great Recession has caused many young people to question the value of college.
  9. Entrepreneurship

    How to Make Money with YouTube

    YouTube is the third most visited site in the world, and numerous people are making money thanks to the site's popularity. Here's how you can do it.
  10. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center