Fewer Products to Choose from Can Lead to Better Sales
2024-02-15
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1American businesses are reducing the number of products that they offer.
2The change began before the COVID-19 pandemic.
3It has only increased in recent months.
4Coca-Cola used to offer around 400 different kinds of drinks.
5The beverage company recently decided to discontinue half of them.
6Among the products cut were Tab, Zico coconut water, Diet Coke Feisty Cherry and Odwalla juices.
7Other American businesses are reducing food offerings from mayonnaise to cereals.
8Car companies, too, are offering fewer kinds of cars and instead putting more effort into what they think will sell best.
9Stew Leonard's, a company that operates food stores in Connecticut, New York and New Jersey, has cut the number of cereals it offers from 49 in 2019 to 24.
10Edgewell Personal Care Co., the maker of Schick razors and Banana Boat suntan lotion, has cut some kinds of its anti-bacterial wipes called Wet Ones, among other products.
11Dollar General, based in Goodlettsville, Tennessee, used to offer six different kinds of mayonnaise. Now it offers two.
12"The consumer is not going to know the difference," Todd J. Vasos, chief of Dollar General, told experts in December.
13"Actually, it's going to make her life a little simpler when she goes to the shelf."
14Shoppers looking for cars are finding fewer choices as well.
15Both General Motors and Ford have announced they are limiting the number of option combinations customers can get on their vehicles to reduce manufacturing and purchasing complexity.
16That is a change of direction from a few years ago when companies aimed to offer more choices.
17Online shopping caused some to think that more choices lead to better sales. But more choices often do not.
18Companies started reducing the number of products they offer a year or two before the pandemic.
19During the pandemic, the reductions increased, with companies focusing on necessities as they faced supply problems.
20After the pandemic, when goods began moving freely again, many businesses discovered less was better.
21New offerings made up about two percent of products in stores in 2023.
22That includes products for beauty, footwear, technology and toys.
23Market research company Circana said that number is down from five percent in 2019.
24Many think the companies are also helping shoppers.
25Some studies show that fewer choices result in shoppers buying more.
26In 2000, psychologists Sheena Lyengar and Mark Lepper published a study that showed limited selection is better for people who are buying things.
27In their experiment, the researchers found consumers were 10 times more likely to purchase jam when the number of jams available was cut down from 24 to six.
28Later studies have produced similar findings.
29"Retailers are recognizing that they have to be respectful of shoppers' time," said Paco Underhill, whose company, Envirosell, studies consumer behavior.
30But retailers cannot just reduce offerings without a plan, said David Berliner of BDO, a business services company.
31"You want to make these cuts so they're not even aware of it, and you want the store to still look full," Berliner said.
32"If you do it too much, you might scare some away."
33I'm John Russell.
1American businesses are reducing the number of products that they offer. The change began before the COVID-19 pandemic. It has only increased in recent months. 2Reduced offerings 3Coca-Cola used to offer around 400 different kinds of drinks. The beverage company recently decided to discontinue half of them. Among the products cut were Tab, Zico coconut water, Diet Coke Feisty Cherry and Odwalla juices. 4Other American businesses are reducing food offerings from mayonnaise to cereals. Car companies, too, are offering fewer kinds of cars and instead putting more effort into what they think will sell best. 5Stew Leonard's, a company that operates food stores in Connecticut, New York and New Jersey, has cut the number of cereals it offers from 49 in 2019 to 24. 6Edgewell Personal Care Co., the maker of Schick razors and Banana Boat suntan lotion, has cut some kinds of its anti-bacterial wipes called Wet Ones, among other products. Dollar General, based in Goodlettsville, Tennessee, used to offer six different kinds of mayonnaise. Now it offers two. 7"The consumer is not going to know the difference," Todd J. Vasos, chief of Dollar General, told experts in December. "Actually, it's going to make her life a little simpler when she goes to the shelf." 8Shoppers looking for cars are finding fewer choices as well. Both General Motors and Ford have announced they are limiting the number of option combinations customers can get on their vehicles to reduce manufacturing and purchasing complexity. 9Trends 10That is a change of direction from a few years ago when companies aimed to offer more choices. Online shopping caused some to think that more choices lead to better sales. But more choices often do not. 11Companies started reducing the number of products they offer a year or two before the pandemic. 12During the pandemic, the reductions increased, with companies focusing on necessities as they faced supply problems. After the pandemic, when goods began moving freely again, many businesses discovered less was better. 13New offerings made up about two percent of products in stores in 2023. That includes products for beauty, footwear, technology and toys. Market research company Circana said that number is down from five percent in 2019. 14Many think the companies are also helping shoppers. Some studies show that fewer choices result in shoppers buying more. 15In 2000, psychologists Sheena Lyengar and Mark Lepper published a study that showed limited selection is better for people who are buying things. In their experiment, the researchers found consumers were 10 times more likely to purchase jam when the number of jams available was cut down from 24 to six. Later studies have produced similar findings. 16"Retailers are recognizing that they have to be respectful of shoppers' time," said Paco Underhill, whose company, Envirosell, studies consumer behavior. 17But retailers cannot just reduce offerings without a plan, said David Berliner of BDO, a business services company. 18"You want to make these cuts so they're not even aware of it, and you want the store to still look full," Berliner said. "If you do it too much, you might scare some away." 19I'm John Russell. 20Anne D'Innocenzio reported this story for the Associated Press. John Russell adapted it for VOA Learning English. 21____________________________________________ 22Words in This Story 23consumer -n. a person who buys products for personal use 24shelf - n. a flat board which is attached to a wall and on which objects can be placed 25option -n. (sales) a choice of car or truck model that has a set group of products that go with it, and which is offered at one of several pricing levels 26focus - v. to direct your attention or effort at something specific 27selection -n. a group of products from which a person can choose 28jam -n. sweet, preserved fruit that is usually put on bread 29retailer - n. a person or business that sells things directly to customers 30aware -adj. knowing that something is present, available or that it exists