Penn Traffic Cuts SKUs

Penn Traffic Co. has begun analyzing its product categories to optimize its offering and trim SKUs, the company said in a conference call discussing second-quarter earnings.

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.

Read More of Today's Headlines [4]