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TERM
Retail Category
A group of related products managed together.
Definition
A retail category organizes SKUs by shopper need and store department.
How to Calculate
Define category hierarchies and assign SKUs.
Why it Matters
Enables category management and reporting.
Key Advantages
Clear focus for joint planning.
Example
Ready-to-eat cereal is a category.
Use it to
Define the grouping of products that shoppers and retailers treat as a comparable set. Use retail category structure to evaluate share, space, and pricing within context.
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