Finding products kept only by habit with a zero based range review
The short answer
A zero based range review starts from an empty range and makes every line earn its place again, in place of assuming last season's range carries forward. Score each line on margin, unique customers, what it is bought with and the role it plays, and flag lines that pass none of those tests as products kept only by habit.
Why it matters
Long-standing lines escape scrutiny because nobody remembers why they were added. They tie up stock, space and buyer time, and each one that survives by habit takes a slot from a line customers would buy.
The question to ask
Copy this into Lexi as written.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a footwear retailer reviewing 1,800 lines from zero. Each line must pass at least one test to stay.
- Margin per unit at or above the category median
- At least 150 unique buyers a year
- In orders with high-margin lines at least 30% of the time
- Completes a size, color or price range
What the data shows
140 lines fail all four tests and have been carried for over two years. They hold $310,000 of stock at cost.
What it means
Most are basic laces, insoles and colorways nobody has reordered in years.
What to do
Clear and delist the 140, starting with the highest stock value.
Want me to show who buys each flagged line?
Frequently asked questions
What is a zero based range review?
A zero based range review assumes no line is guaranteed a place. Every product has to justify itself on margin, customers, basket role or strategic role, as if it were being added for the first time. The approach borrows from zero-based budgeting, where every cost must be justified afresh.
Why do some lines survive every range review?
Reviews often start from last season's range and only question the worst performers. Lines in the middle that are neither strong nor weak, or that someone senior once championed, carry forward by default. Starting from zero puts every line through the same tests.
How does a zero based review fit with product range rationalization?
Range rationalization usually targets the weakest lines by sales or margin. A zero based review is broader, testing every line, including middling ones that a bottom-up cut would never reach. Use the zero based review to set the list, and rationalization rules to decide how fast to cut.