The assortment turnover rate represents the ratio of the product number differential (GTIN) between your innovation and your product attrition, over the assortment width. The indicator allows you to measure the evolution of your assortment width as a percentage.
Assortment renewal rate = (Innovation in GTINs - Attrition in GTINs) / Assortment width in GTINs
For a market consisting of 2,000 products:
200 products have no sales in your analysis period, but were sold in the same period the previous year, these 200 products represent assortment attrition.
400 products have sales in your analysis period, but were not sold in the same period the previous year, these 400 products represent assortment innovation.
1,600 products have sales in your analysis period, these 1,600 products represent the breadth of the assortment.
Assortment renewal rate = 12.5% = (400 - 200) / 1,600
This is interpreted as a 12.5% broadening of the product offering.
The Renewal Products Assortment Rate indicator can be translated into English as "Renewal products assortment rate" or RPA Rate.
The product mix renewal rate can also be studied in value or volume sales, to measure the weight of product renewal on sales.
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