Case Study: a Latin American wholesaler cuts SKU range while retaining sales with dunnhumby

Latin American Wholesaler cuts SKU range by up to 44% with Dunnhumby

The Latin American wholesaler, a large grocery wholesaler, wanted to simplify its product range without losing sales but lacked a data-driven method to identify which items were interchangeable from a customer's perspective. The vendor, dunnhumby, applied its customer insight tools to this challenge.

dunnhumby ran a proof of concept that analyzed customer behavior data, revealing significant product redundancy. This provided an evidence-based framework that allowed the wholesaler to cut 26-44% of its SKUs while retaining 92-99% of sales and uncovered a $3.6 million private label opportunity.