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Category Share
Percentage of total category sales captured by all brands combined.
Definition
Category share measures the proportion of sales attributed to a category within a larger market, showing its importance in overall spending.
How to Calculate
Divide category sales by total market sales and multiply by 100.
Why it Matters
Helps gauge category relevance and prioritize investment in high-share categories.
Key Advantages
Provides a benchmark for category performance, supports assortment decisions, and informs resource allocation.
Example
If cereal sales are $500,000 in a $5,000,000 grocery market, category share is 10 percent.
Use it to
Measure the category’s percent of total store or market sales to understand its relative importance. Track shifts to see when the category gains or loses priority in a retailer’s assortment.
