Cut the Worst Options and Customers Buy More
Aldi, the world's ninth-largest retailer, sells 1,400 products; a typical Walmart sells 100,000.
TED · Sheena Iyengar: How to make choosing easierWhen Procter & Gamble trimmed Head & Shoulders from 26 varieties to 15, sales rose 10 percent. When the Golden Cat Corporation dropped its 10 worst selling cat litters, profits jumped 87 percent, from both higher sales and lower costs.
The lesson comes from Sheena Iyengar, a behavioral scientist who studies how people choose. Her first rule for fixing an overwhelming lineup is to "cut, get rid of those extraneous redundant options," even though managers worry they will lose shelf space. She says cutting does three things at once, it lifts sales, it lowers costs, and it makes choosing easier for the customer.
The contrast is stark on store shelves. A typical grocery store stocks 45,000 products, and a typical Walmart offers 100,000. Aldi, the ninth largest retailer in the world, offers only 1,400 products, including just a single option for canned tomato sauce.
To try it, do what those companies did. Rank what you sell, identify the weakest sellers and the near duplicates, and remove them first. You are not betting that customers love limits in general. You are betting that fewer look alike choices let them find a good one faster, and let you spend less stocking, tracking, and explaining the rest.
Start with the 10 products you would be least sad to lose.
Questions people ask
How do I pick which products to cut?
Look at unit sales, profit after handling and storage, and how often an item is returned or exchanged. Cut the bottom sellers first, especially ones that duplicate a stronger seller in size, scent, or formula.
Won't cutting choice drive some customers away?
It can, if customers came only for that exact variant and will not accept a substitute. That is why companies usually cut the weakest sellers and near duplicates, not the core bestsellers that drive traffic.
Does this only work for stores?
No. The examples cover shampoo, cat litter, and groceries, but the principle is about decision difficulty. Any menu, plan lineup, or catalog where options blur together can benefit from pruning.