What does "category management" involve in merchandising?

Category management in merchandising involves grouping products together to enhance the customer shopping experience. This approach allows retailers to analyze how different products relate to each other and how they are perceived by customers. By organizing products into categories, retailers can better understand consumer behavior and preferences, while also optimizing shelf space and promotional strategies. This method not only makes it easier for shoppers to find what they need but also encourages additional purchases by strategically placing related items together.

This concept focuses on viewing product categories as strategic business units, leading to more informed decisions about pricing, promotions, inventory, and placement. Providing a more organized shopping experience can lead to increased customer satisfaction and loyalty, which are critical for long-term success in the competitive retail environment.