The Data: Most Sales Come from a Tight Core
Let’s look at the numbers. In large retail pharmacies, more than 5,000 retail products may be on display, yet a staggering 80% of sales come from just 1,500 top-sellers. That leaves thousands of products accumulating dust – and one-third of all items are “dead stock” that haven’t achieved a single sale for more than 6 months. These “shelf-blockers” drain capital and increase labour without contributing to profit or shopper satisfaction.
In the ultra-competitive UK supermarket sector, chains like Asda, Morrisons, Sainsbury’s and Tesco have been delisting about 5% of their products every year since 2018, quietly removing thousands of slow-movers in a major rationalisation of choice. Asda alone axed 6,000 items since 2019.
Similar strategies are playing out at Kohls and Macy’s department stores in the US, which have pared down product ranges to streamline costs, reduce complexity, and improve profitability.
Why Brands Push More SKUs – And Why Retailers Are Fighting Back
Brand manufacturers are locked in a constant race to capture more shelf space by launching new variants, pack sizes, and “innovative” SKUs (Stock-Keeping-Units). Their hope is that broader assortment increases the odds of shopper trial. However, this often creates headaches for retailers, who must manage physical shelf constraints and ensure real “hero” products stand out.
Smart category managers demand that suppliers prove which SKUs deserve space, prioritising those with strong demand, distinctive points of difference, and proven sales traction.
The Behavioral Science: More Choice Isn’t Always Better
Psychologists have long recognised the danger of “choice paralysis.” Too many options overwhelm customers, leading to indecision or defaulting to the cheapest or most familiar product.
Evidence shows customers crave convenience, clarity, and ease. This is why Aldi and Lidl, with smaller assortments, continue to outperform their larger rivals. In fact, studies suggest most shoppers only want a handful of well-chosen options, particularly for everyday needs.
Practical Steps for Pharmacies
- Identify your star products: Use sales data to highlight your top-sellers – often just 1,000 – 1,500 products generate the bulk of sales.
- Challenge suppliers: Insist on hard evidence that new lines warrant shelf space and trim overlapping or underperforming brands.
- Keep assortment tight: Follow the “good-better-best” approach, limiting each category to no more than three trusted brands.
- Regular reviews: Revisit your product range regularly to remove poor performers and keep pace with consumer needs.
- Emphasise clarity: Make your store easier and more enjoyable to navigate for both shoppers and staff.
The Takeaway
The less-is-more movement is not a trend, it’s a proven performance strategy. With shoppers demanding simplicity and proven brands, and with retail giants leading the way, it’s time for pharmacies to focus on a tight core range.
Fewer SKUs mean higher sales per product, stronger supplier terms, reduced dead stock, and, most importantly, happier customers who trust you to recommend the right product, every time.
