Consumers Prefer Variety When Shopping

A recent study finds that consumers avoid stores with limited variety.

June 21, 2010

NEW YORK - In recent years, the theory that consumers prefer fewer products to choose from when shopping has been gaining ground, but a new study by Nielsen dispels that theory, Brandweek reports.

The survey found that 59 percent of respondents would skip a supermarket if the store reduced its product selections. Sixty percent said they would not visit a drug store if the items available were fewer; the same percentage indicated they would not shop at mass merchandisers with less items. Just under half (49 percent) said they would stop shopping at a club store that reduced its inventory.

The good news is that only 7 percent of respondents said they had noticed fewer products at those stores. But 42 percent of retailers questioned said they had less selections in 2009, with 40 percent indicating plans to keep reducing products. According to Nielson, those retailers had "stated targets to cut up to 10 percent of SKUs on the shelf."

Among stores that are lowering inventory, 75 percent "are downsizing their product assortment to improve merchandising opportunities, while 71 percent cite a desire for greater control over inventory," according to Nielsen??s findings summary. The majority of those stores (60 percent) said they were reducing inventory "to alleviate shopper confusion," while just over half (52 percent) were doing so to "cut costs and improve profitability."

Nearly half of those retailers making reductions (48 percent) were clearing shelf space for more of its own private-label brands.

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