The assortment renewal rate represents the ratio between the differential in number of products (GTIN) between your innovation and your product attrition, over the width of the assortment. The indicator allows you to measure the evolution of your assortment width in percentage.
Range renewal rate = (Innovation in number of GTINs - Attrition in number of GTINs) / Width of the range 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 assortment attrition.
- 400 products had sales in your analysis period, but were not sold in the same period the previous year, these 400 products represent the innovation of the assortment.
- 1,600 products have sales in your analysis period, these 1,600 products represent the breadth of the assortment.
Renewal rate of the assortment = 12.5% = (400 - 200) / 1,600
What is interpreted as an extension of the product offer of 12.5%.
The assortment renewal rate indicator can be translated into English as "Renewal products assortment rate" or RPA Rate.
The renewal rate of the product assortment can also be studied in sales value or volume, to measure the weight of product renewal on sales.
Sales & Marketing Advanced subscription