1. SKU Sales Pareto Top 25% of Core Items are equal to 70.63% sales $
The bottom 25% of core items are 1.47% of sales $

2. Why SKU Elimination Increases Sales
Here is a little secret of merchandising/marketing/product development. Reducing SKUs increases sales. In a retail environment it does it because of this graph. The more SKUs you sell, the less room you can give each item. In a B2B environment think of shelf-space as sales-rep attention. The more items you sell the less focus each gets from Sales Reps.
Here we can see Vienna Sausage sells 18 cases a week. It only has room on the shelf for 6 cases. Do you think there are times when the shelf is empty? Yes. It doesn’t have enough shelf space because they used that space for new items.
Remember, reducing SKU’s (bad ones) always increases sales. At the least it makes room for new SKUs that may be great, average or terrible. You don’t know if you don’t try and just adding creates the problem above.

3. Multi-Variable Pareto Best
Here are the top 13 items as ranked by their “Overall Performance Factor”. You can see why, with Bananas and Hot Dogs, it is important to include Unit Volume in our ranking calculation.
This happens to be the analysis for one Distribution Center. The quick win we got from this analysis is the realization that Roma Tomatoes are not an everyday item in some of their other regions. The #2 best SKU is not offered in all stores.

4. The Biggest SKLUsers
And here we see the worst 13 items. The Overall Performance Factor was too small to even see a number at 2 decimal places.
You can see that some of these items are Hispanic or ethnic. We deep drilled and found out the ethnic-food sales companies are convincing our store managers that they must try these “hot sellers”, and then when they don’t sell, they just stay in the store. The Sales Reps are fighting for shelf space, and the consumer is losing.

5. SKLUser Execution & Control
Building SKLUser analysis into category review
CSM responsibility for execution and control