The assortment attrition rate represents the portion of the product portfolio that has become inactive over your analysis period.
Attrition rate = Attrition in number of GTINs / Width of the assortment in number of GTINs
For a market made up of 2,000 products:
- 200 products did not have sales in your analysis period but were sold in the same period the previous year, these 200 products represent the attrition of the assortment.
- 1,600 products have sales in your analysis period, these 1,600 products represent the breadth of the assortment.
Attrition rate = 12.5% = (200 / 1,600)
The assortment attrition rate indicator can be translated into English as "Churn rate" or CPA Rate.
The attrition rate of the product assortment can also be studied in sales value or volume, to measure the weight of inactive products over sales.
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