Assortment management

Products in the general selection are allocated to shops centrally using a matrix in which the shop categories are one element and the product assortment based on category trees is the other element.

Shop categories

Shop categories are a combination of the sales profile (Normal, Basic, Plus) and the shop size (5 size classes: S–XXL), for example “normal-S”. In addition, there are shops of type Joker. These shops have exceptional conditions, such as small shop surface or demand that varies greatly depending on the season.

Category tree

Alko’s assortment is allocated to different shop types centrally, based on the customer-oriented category tree. In the category tree, the product categories are first divided into sub-categories and then into segments. Products in different segments are allocated to shops on the basis of their demand.

Assortment allocation

The cyclic monitoring of the sales of products in each segment covers approximately the last six months. The cyclic monitoring is made three times a year. The products of each segment are placed in the order of their size based on their turnover without tax, and weighted distribution level calculation is applied here. The main rule is that the best-selling products in segments have central allocation to a bigger number of shops than those with a lower ranking.

The customer-oriented category tree is build up of different product categories and segments.