Certified Professional Category Analyst (CPCA) 2025 – 400 Free Practice Questions to Pass the Exam

SKU (Stock Keeping Unit) proliferation refers to the increase in the number of unique products or variations of products that a retailer offers. The consequence of SKU proliferation often leads to an increased variety of products on the shelves, which aligns with the correct answer. Retailers aim to cater to various customer preferences by providing a broader range of choices, hence utilizing more shelf space to display this diversity.

While it is true that increased product diversity can attract different customer segments and enhance the shopping experience, it can also lead to issues such as lower product turnover rates, as fewer units of each product may be sold. This could result in higher retail prices due to increased complexity in inventory management and supply chain logistics. Decreased operational costs are unlikely since managing more SKUs typically involves increased costs in terms of logistics, inventory control, and potential markdowns due to excess stock.

Overall, the correct answer encapsulates the intention behind SKU proliferation in retail environments, which is to enrich product offerings and enhance customer satisfaction.