Assortment management

Products in the general selection and in the specialties are allocated to shops centrally by product groups using selection profiles.

Category tree

The product assortment is allocated based on the Alko’s category tree. The category tree is based on customer requirements and behavior as well as consumer demand analyzed by Alko. In the category tree, the product categories are first divided into sub-categories and then into segments. 

Selection profiles

Selection profiles are a combination of the demand profile (Normal, Basic, Plus) and the shop size (6 size classes: XS – XXL), for example “normal-S”. In addition, there are shops of type Joker. These shops have exceptional conditions, such as small shop surface or a demand that varies greatly depending on the season.



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.