LAS VEGAS, June 15 (Reuters) – U.S. retailers strive for the perfect mix of products that will boost sales and keep costs down — but the experience of some, including Wal-Mart Stores Inc (WMT.N), in pruning merchandise shows that getting the recipe just right, can be tricky business.
More than 40 percent of retailers reduced the number of different items, or SKUs, on their shelves in 2009 and nearly the same number expect to make additional cuts, according to a survey released by the Nielsen Co on Tuesday.
Limiting the product assortment can help retailers like Walmart and drugstore giant Walgreen Co (WAG.N) and grocers Kroger Co (KR.N) and Supervalu Inc (SVU.N) cut costs, but the risk is that shoppers will take their money elsewhere if they are unable to find an item.
"The message to retailers is to choose carefully when it comes to deciding which products to trim," Stuart Taylor, Nielsen's vice president of custom analytics, said at the market research firm's Consumer 360 conference in Las Vegas.
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