A tactical guide to finding your Key Value Items (KVIs)

In prior posts we’ve discussed the varying definitions of the Key Value Item (KVI) in retail.  Setting aside the important differences, the core principle remains: KVIs are the most important SKUs in the assortment.  We’ve worked with many retailers to build and maintain a list of their KVIs as top priority SKUs.  And while every retail sector has its own specifics, there are a few general themes that can help identify your KVIs.

SKU-Level:

  • Coverage (Stores selling)
  • Exclusive or Private Label
  • Price Constraints (MAP or otherwise)

Category:

  • Share vs. Competition
  • Trend (Comps and Share)
  • Frequency of Shop

Financials:

  • GM %
  • Markdown Frequency and Depth
  • Advertised vs. UnAdvertised

Velocity

  • Sales
  • Seasonality (peak to average)

Customer:

  • Breadth of Customers
  • Customer Item Frequency
  • Lead Item %

Elasticity

  • Base Price elasticity
  • Promotion elasticity

Within each of these categories there’s the work of finding the actual dataasets, metric calculations, balancing, and validation of the resulting lists to be done.  Give us a shout, we’d love to help.

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