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. Hypermarket

    A retail store that combines a department store and a grocery ...
  3. Big Box Retailer

    A retail store that occupies an enormous amount of physical space ...
  4. Retail Sales

    An aggregated measure of the sales of retail goods over a stated ...
  5. Freelancer

    A freelancer is an individual who earns money on a per-job or ...
  6. Online-To-Offline Commerce

    A business strategy that draws potential customers from online ...
RELATED FAQS
  1. What is the relationship between research and development and innovation?

    Although it's possible to achieve innovation without research and development and it's possible to conduct research and development ... Read Full Answer >>
  2. How is a product line depth related to a product line?

    A company's product line depth is the number of products in the company's product line. Product Line A product line is a ... Read Full Answer >>
  3. How has electronic retailing (e-tailing) changed the consumer discretionary goods ...

    Electronic retailing has changed the consumer discretionary goods sector by increasing price transparency and product information. ... Read Full Answer >>
  4. How does the notion of the American Dream influence the US economy?

    The notion of the American Dream influences the U.S. economy because it creates the driving force behind the free enterprise ... Read Full Answer >>
  5. Is good customer service something to look for in a company in which I am considering ...

    Investors should consider good customer service before buying a stock especially in consumer-oriented sectors. Customer service ... Read Full Answer >>
  6. How do venture capitalist investors view sustainable growth in a startup?

    Venture capitalist investors view sustainable growth in a startup as necessary when considering investing in it. Typically, ... Read Full Answer >>
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. Savings

    The Pros and Cons of Buying on Amazon

    Learn how buying works with Amazon. Amazon has become the dominant player in online retail with its ruthless focus on lower prices and customer service.
  8. Professionals

    Top Strategies to Attract Elite Clients

    Here's how to think outside of the box when it comes to attracting a high-net-worth client base.
  9. Stock Analysis

    Top Investment Ideas for Malls of the Future

    How investors should be thinking about the mall of tomorrow.
  10. Stock Analysis

    Do Data Breaches Really Matter for Retailers?

    Do data breaches hurt the stock price of retailers? Let's have a look at a few examples.

You May Also Like

Hot Definitions
  1. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  2. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  3. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  4. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  5. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!