Strategic Assortment Decisions in Information-Intensive and Turbulent Environments

Recent trends in the environment have caused changes in consumers’ store patronage, price sensitivity, and need for variety. These changes have led retailers to reconsider some of their assortment options. Specifically, we discuss how they may have led some retailers to move from a single-format to a multiple-format channel portfolio, how they may have contributed to the growth of the discount format, and how they tend to influence the private-label portfolio of many retailers. We end by showing how these assortment changes may, in turn, have various welfare, logistical, and tactical implications.

► Key environmental trends have affected consumer preferences.
► Changing preferences are reflected in changing store patronage, changing price sensitivity and changing variety seeking.
► These changes have lead manufacturers and retailers to alter their assortment offering.
► Changing assortments have welfare, logistical and tactical implications.