What is Stock Keeping Unit Rationalization?

In SKU (Stock Keeping Unit) rationalization, a retailer examines the profitability of items and vendors as a whole. When done in a linear fashion, it results in lost sales and bringing back the SKUs.

Increasing sales is based on what items are bought together can help retailers improve merchandising and drive more sales through all channels. As shoppers, we all buy items in groups. Retailers are tasked with figuring out what kinds of items are bought together, to optimize merchandising, increase revenue and keep customers coming back.