SKU Rationalization Case Study Humanizing Data for Purposeful Change AArete.com | 312.585.0800 SITUATION APPROACH RESULTS A leading price point retailer approached AArete to develop a SKU rationalization strategy for their department stores. The client’s existing strategy focused on rationalizing SKUs on the basis of simple KPIs without appropriately accounting for market basket characteristics, inter-departmental associations and other hidden relationships. AArete developed a custom SKU rationalization model leveraging multiple algorithms, most notably an association rules algorithm, focusing on market basket analysis. Using an open-source analytics software called R, we developed product clusters to identify complementary products based on a number of variables. Through defining t

Join for free to read