The reasons for that are because the assortment of products is critical to demand generation and shopper satisfaction. ... An important factor to consider during the assortment planning process is that assortment variety increases inventory costs. Therefore it is important for assortments to be optimised.

Why is an assortment plan important?

Planning an Assortment provides you with a clear direction as to how to break up the spend to give each and every store a meaningful range, which supports their sales, fits in their space and works to their strengths.

Why is variety and assortment important?

Variety and assortment are important elements of the retail market structure because unless the retailer will offer large number of products to the customers, it cannot expand its business and improve its sales and overall profits.