Category Management

The term category management has been around for some time, but only now beginning to filter through to SME retailers.

Category management is the process by which we manage our business at the category level to deliver better product, pricing and service to our customers. A category is a group or assortment of merchandise that the customer finds interchangeable; i.e. customers define category structure.

As a rule of thumb:
•    No more than 10 departments per store
•    No more than 10 categories per department
•    No more than 10 subcategories per category

•    Store:             >>> Newsagent
•    Departments: >>> Magazines, Newspapers, Gifts, Stationery
•    Categories:     >>> Women’s Interest, Teenager, Adult
•    Sub-categories: >>> Bridal, Gossip Weeklies
•    Items:            >>> Woman’s Day

Category management means:
•    Display at the category level
•    Planning at the category level
•    Open to Buy at the category level
•    Reporting at the category level
•    Price analysis at the category level