SYRACUSE, N.Y. – Penn Traffic Co. here has begun analyzing its product categories to optimize its offering and trim SKUs, the company said in a conference call yesterday discussing second-quarter earnings.
In the pilot category, salad dressing, the company said it eliminated 46 product variations that were under-productive and added 26 new SKUs "that address emerging trends and growth in certain segments of the category, particularly in our value-orientated private label brands," said Gregory J. Young, president and chief executive officer.
"As a result, we're carrying 20 fewer SKUs and the variety we do have in inventory that's dictated by consumer demand, which should have a favorable impact on our top line, while reducing inventory and improving turnover," he said.
The cuts have been facilitated by Penn Traffic's work on the procurement side with supplier C&S Wholesale Grocers using data from Information Resources Inc. and suppliers, in addition to the retailer's own internal data. Penn Traffic has also begun price optimization work, Young said.
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