According to the firm's Snapshot Report, shoppers are struggling to find what they are looking for as there are so many options on retailers shelves with insufficient differentiation. Time-strapped consumers want stores where it is easier to shop.
Looking at data spanning from 2000 to 2010, the report looks at a cross-section of categories affected by range reduction. Ranges increased from 2005, reaching a peak in 2008 and declining over the past two years. The worst affected categories have lost an average of 18% of their range at store level.
As well as simplifying the shopping experience, range reduction can help retailers bring down inventory and staff costs and reduce out-of-stock occurrences.
Decisions about which brands to rationalise can be taken quickly but can be very difficult to reverse. Shoppers who can no longer find a favourite product in one category may take their entire business to another retailer that stocks the product.
The report also observes that fewer new products may make it to the shelf or stay there for a substantial time.
With supplier reviews looming in the first quarter of 2011, the topic of range reduction is likely to be top of the agenda.