Companies experimenting with less variety
INDIANAPOLIS – If variety is the spice of life, some big corporations are hoping you’ll enjoy a blander shopping experience.
According to the Associated Press, several major corporations are cutting down on the number of brands they sell.
The move appears to be another aftereffect of the COVID-19 pandemic, when supply chain issues forced several major corporations to cut some brands from their production lines. Since 2020, Coca-Cola has cut nearly 400 brands in half down to about 200. The company has parted ways with names like Tab and Zico, as well as varieties like Diet Coke Feisty Cherry. The AP also reports that many shoppers are starting to notice less variety at stores like Kohl’s and Dollar General.
So is this a good thing, or a bad thing? That might depend on the shopper.
The AP reports that companies are banking on consumers appreciating a simpler shopping experience. Instead of 50 brands of cereal to choose from, it could be easier to decide among 25. Maybe having six brands of mayonnaise is better than 12.
There is evidence suggesting that shoppers are more likely to buy something if they have fewer choices. In 2000, a psychological experiment showed that shoppers were ten times more likely to buy a jar of jam if they had six to choose from rather than 24. The idea is that too much variety can make a shopper feel overwhelmed and more likely to simply walk away with nothing.
Still, some experts warn that companies and stores need to be careful with this kind of brand reduction.
“You want to make these cuts so they’re not even aware of it and you want the store to look full,” said David Berliner with the business restructuring firm BDO. “If you do it too much, you might scare some away.”
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