Data Drives Coffee Sales Through SKU Rationalization

BACKGROUND
The coffee category was not growing sales and consistently had out of stocks. The hypothesis was that the coffee aisle was over-SKUed, causing much consumer confusion and frustration. The theory that “more is better” was not playing out. 

EXECUTION
84.51° used purchase data, science and predictive analytics to evaluate which SKUs should be kept and which should be discontinued. We also created a profile of which coffee SKUs most likely appeal to which customer segment. 

RESULTS
Based on our findings, 84.51° recommended that Kroger reduce the overall number of coffee SKUs they carry. Once the coffee aisle was simplified, category sales began growing again.