Coca-Cola has recently stopped producing half of its drink options. The reason for this decision has not been widely publicized.

What is the limit for having too many options?

Coca-Cola reportedly offers approximately 400 varieties of beverages.

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, they still offer around 200 other options for consumers to select from.

This strategy is also being adopted by other companies, where they are decreasing the range of products available, from condiments to breakfast items to vehicles, and instead prioritizing those they believe will have the highest demand.

Stew Leonard’s, a grocery store franchise with locations in Connecticut, New York, and New Jersey, has reduced its selection of cereal flavors from 49 in 2019 to 24. Edgewell Personal Care Co., the company behind brands like Schick and Banana Boat, has scaled back on certain options of its anti-bacterial wipes, including Wet Ones. Dollar General, headquartered in Goodlettsville, Tennessee, used to carry six types of mayonnaise but is now considering removing a few from its inventory.

“The average customer will not be able to discern the distinction,” stated CEO of Dollar General, Todd J. Vasos, during a meeting with analysts in December. “In fact, it will even streamline her shopping experience when she peruses our shelves.”

One year ago, the Kohl’s store in Clifton, New Jersey had a wide selection of colorful sweaters and shirts stacked on tables, along with a variety of different styles on dress racks. However, now the store has adopted a more streamlined approach. The tables have fewer knit shirts in a limited range of colors, and there are only three or four styles available on many dress racks.

Kohl’s, under the leadership of its new CEO Tom Kingsbury, has been reducing the range of colors and styles for products like sweaters and jeans. Additionally, their buyers are now making more frequent trips to the New York market to acquire the latest and most fashionable merchandise.

Kingsbury mentioned in a call with analysts in November that in the past, they would purchase a large quantity of goods and receive them 12 to 14 months later, but they did not have good results. To be more responsive to trends, they will now utilize the marketplace.

A few clients are satisfied with the current modifications.

Kimberly Ribeiro, 30, commented that the Kohl’s store was well-organized and not cluttered, which helped her avoid feeling overwhelmed during her recent visit on a Friday.

In the world of automobiles, customers are noticing a decrease in available options. General Motors and Ford have been promoting their efforts to minimize the number of choices for customers when it comes to features on their vehicles in order to simplify manufacturing and purchasing processes.

This marks a change from a few years ago, when there was a surge in options, driven in part by the rise of online shopping that did not consider physical limitations. However, this did not always result in sales, prompting companies to reduce their offerings a year or two before the pandemic.

Amidst the pandemic, companies intensified their efforts to trim down and prioritize essential items due to supply chain disruptions. Even as things began to return to normal, many businesses continued with this approach, claiming that consumers prefer a more limited selection. This also benefits companies financially since they have fewer unsold items that require discounted pricing.

According to market-research firm Circana, the percentage of new products in stores across categories like beauty, footwear, technology, and toys decreased from 5% in 2019 to approximately 2% in 2023.

Eric O’Toole, the president of Edgewell’s division in North America, stated that the pandemic provided a valuable opportunity to reevaluate their product selection.

“We refrain from following trends, as the expenses involved in the supply chain and retail process do not typically result in a profit,” stated O’Toole. “Having a more focused and carefully selected portfolio allows for better profit management.”

Some believe they are benefiting shoppers, as research suggests that having fewer options, rather than a wide selection, can actually entice shoppers to make more purchases.

In the year 2000, Sheena Lyengar and Mark Lepper, both psychologists, conducted a study which revealed that having a limited selection is more beneficial for shoppers. Through their experiment, Lyengar and Lepper discovered that consumers were 10 times more inclined to buy jam when the number of options was reduced from 24 to 6, despite being more likely to stop at a display with more choices. Further research has supported this finding.

Paco Underhill, whose company Envirosell specializes in studying consumer behavior, stated that retailers are now acknowledging the importance of respecting shoppers’ time.

However, according to David Berliner, who heads BDO’s business restructuring and turnaround practice, retailers cannot simply reduce prices without careful consideration.

Berliner stated that the goal is to make the cuts inconspicuous and maintain the appearance of a well-stocked store. However, if the cuts are too noticeable, it could potentially deter customers.

According to Berliner, limiting the selection of products may have negative effects on smaller brands that depended on retailers for offering a diverse range of options. This could lead shoppers like Brian Friedman to switch to other competitors.

A 49-year-old individual who works in communications and resides in Little Falls, New Jersey mentioned that they have been using Open Pit as their preferred barbecue sauce for many years. However, they noticed that their nearby grocery stores stopped carrying it in recent years. As a result, they have resorted to purchasing it from Amazon. This has caused the local stores to not only miss out on Open Pit sales from this individual, but also any other products they used to buy while shopping for their beloved barbecue sauce.

Friedman expressed his dislike for retailers dictating his interests and preferences, stating that he prefers a diverse selection and specific brands.

Source: independent.co.uk