How Many SKUs Should You Stock?
One of the key aspects of building a successful dispensary is creating a strong retail experience for consumers. This includes optimizing the store’s product catalog and managing the inventory appropriately. Offering consumers a smart mix of products can help generate more sales and increase margins. Retailers hold differing opinions when it comes to the magic number of stock-keeping units (SKUs) dispensaries should carry, but Treez’s data indicates most of the suggested “ideal” counts are too high. The average retailer offers around 1,500 SKUs, which is far too many for most dispensaries. There is a time and place for superstores that carry 1,000 SKUs or more, but data indicates more businesses will succeed with fewer. Based on my experience, the ideal number of SKUs ranges between 100 and 300, which is a much more manageable number for any retailer. Consumer brand preferences ultimately will become the driving factor bringing SKU counts down to the point where retailers can ...