Elements Of Category Management

Retail industry is facing changes due to financial crises in 2007., and its impact on consumption and consumer behaviour. The battle for new consumer is changing and is being transferred in to the store. Therefore stores are placed that needs to be considered, but the retailers do not have any change in profit when costumers switch from article A to article B. The new strategy that some consider to be an evolving approach to retail product management is category management. Category management (CM) has implication on whole retail company organization and in its supply chain. The main aspect in CM is category. Category of products or products within a category should be reasonable substitutes for one another. The basic of CM is to quality manage the category of productdifferent product categories have different characteristics so they should be managed as mini business. That business product concept has several steps and differs from other buying approaches. Its implication in product management from procurement to stock management than to display in stores has put interest in that concept. In this paper we will show history changes in CM approach and its impact on retailers’ profit.