What it is
Assortment depth per store is an important measure for physical availability. It quantifies how many SKUs (single products) of a brand a sold in an average store.
The measure is calculated by dividing a brand’s weighted distribution by the total distribution points.
How to use
ADS can be used in different ways to increase revenue:
- benchmark versus competition to check if your brand’s ADS achieves it fair share
- Develop assortment strategy to expand the assortment depth per store, especially to achieve incremental listing for e.g. line extensions
What to consider
Generally, Assortment Depth per Store is calculated on weighted distribution to evaluate the assortment depth in an average store, but numeric distribution can be used as well.
In taking into account competition, assortment shares can be calculated.