Coca-Cola has recently made the decision to discontinue half of its beverage offerings, and the reason behind this move has been kept low-key.

What is the limit for the amount of options?

Reportedly, Coca-Cola offers approximately 400 distinct beverage options.

As a result, the drink company has recently chosen to stop producing half of their products, including brands such as Tab, Zico coconut water, Diet Coke Fiesty Cherry, and Odwalla juices. However, there are still approximately 200 other options available.

Other companies are also following this trend, streamlining their product range from condiments and breakfast items to vehicles, in order to prioritize the items that they believe will be most successful.

Stew Leonard’s, a retail chain with locations in Connecticut, New York, and New Jersey, currently offers 24 varieties of cereal. This is a decrease from 49 options available in 2019. Edgewell Personal Care Co., known for products such as Schick razors and Banana Boat sunscreen, has also reduced the number of options for certain varieties of their Wet Ones antibacterial wipes. Similarly, Dollar General, headquartered in Goodlettsville, Tennessee, used to carry six different types of mayonnaise but is now considering discontinuing a few of them.

According to Dollar General CEO Todd J. Vasos, consumers will not be able to discern a difference and the change will actually make their shopping experience more convenient.

Last year, the Kohl’s store in Clifton, New Jersey displayed a wide variety of sweaters and shirts in various colors on stacked tables, along with a large selection of styles on dress racks. However, currently the store has adopted a more selective approach, with fewer colors featured in smaller piles of knit shirts on tables, and dress racks showcasing only three or four styles.

Kohl’s, under the leadership of its new CEO Tom Kingsbury, has been reducing the number of colors and styles available for sweaters, jeans, and other products. They have also increased their presence in the New York market to regularly source new and fashionable items.

“We used to make purchases in bulk and wait 12-14 months for the goods to arrive, but unfortunately, they did not meet our expectations,” said Kingsbury during a November conference call with analysts. “In order to stay on top of current trends, we will now utilize the marketplace to quickly respond to changes in the market.”

Several clients are satisfied with the current modifications.

Kimberly Ribeiro, 30, commented that the Kohl’s store she visited on a recent Friday was well-organized. She added that having a less cluttered store helps customers avoid feeling overwhelmed.

In the automotive industry, customers are noticing a decrease in available options. General Motors and Ford have been promoting their efforts to streamline the number of customizable features on their vehicles in order to simplify the manufacturing and purchasing process.

This marks a change from previous years when there was a surge of options due to the influence of online shopping, which didn’t consider limitations of physical space. However, this did not always result in sales, prompting companies to start reducing their offerings a year or two before the pandemic.

Throughout the pandemic, there was an increase in the process of trimming down operations as companies dealt with challenges in their supply chains. This trend continued even after the pandemic, as businesses found that offering a limited selection was preferable. This was justified by the claim that customers do not desire an overwhelming amount of options. Additionally, it is more financially beneficial for companies as they do not have as many unsold items that need to be marked down.

Circana, a market-research firm, reports that in 2023, approximately 2% of products in stores across various categories, including beauty, footwear, technology, and toys, were new items. This is a decrease from 5% of items being new in 2019.

Eric O’Toole, the head of Edgewell’s division in North America, acknowledged that the pandemic provided an important opportunity to reconsider the company’s product offerings.

“We steer clear of following trends, as the expenses for supply chain and retailers needed to get products onto shelves usually do not result in a profit,” stated O’Toole. “Having a more selective and carefully chosen product portfolio allows for effective profit management.”

Some people believe that they are helping shoppers by limiting their choices. Research suggests that a smaller selection, rather than a larger one, can actually lead to more purchases.

In 2000, a study conducted by psychologists Sheena Lyengar and Mark Lepper demonstrated that having fewer options can be more beneficial for shoppers. In their research, Lyengar and Lepper discovered that when the number of jam options was reduced from 24 to 6, consumers were 10 times more likely to make a purchase, despite being more drawn to displays with a larger selection. Further studies have supported this finding.

According to Paco Underhill, whose company Envirosell studies consumer behavior, retailers are realizing the importance of being considerate of shoppers’ time.

According to David Berliner, head of BDO’s business restructuring and turnaround division, retailers cannot simply cut product prices without careful consideration.

Berliner stated that the goal is to make the cuts inconspicuous and maintain the appearance of a fully stocked store. However, excessive cuts may deter some customers.

According to Berliner, limiting the range of products may negatively impact smaller brands that depend on retailers to sell a diverse selection. This could result in shoppers, such as Brian Friedman, choosing to shop at other competitors.

The communications consultant, aged 49 and residing in Little Falls, New Jersey, stated that for a long time, their preferred barbecue sauce has been Open Pit. However, Friedman observed that his nearby stores have stopped stocking it in the past few years, leading him to purchase it through Amazon. This resulted in the local stores not only missing out on Open Pit sales from Friedman, but also all the other items he used to buy while searching for his beloved barbecue sauce.

Friedman expressed her dislike for the concept of a retailer dictating her interests and preferences. She values diversity and has specific brand preferences.

Source: independent.co.uk