What is an assortment matrix? Meaning and structure
The assortment matrix is where a brand decides what to launch, at which price and for which channel, before anyone orders stock.
Definition
Assortment matrixAn assortment matrix is a structured table that defines which products a retailer or brand carries, organised by category, subcategory, price tier, variant and role in the range. It shows how many SKUs exist at each level and which channels or stores carry them, so that range decisions can be checked against budget and space.
How to build an assortment matrix for a new brand
Start with the rows: the categories and subcategories you intend to cover. Then add the columns that matter for decisions: price tier, product role, pack size or variant, channel, launch wave and target margin. Each cell holds a planned SKU or a deliberate gap. When the matrix is filled, it becomes obvious where the range is crowded and where it is thin. Keep it in one shared file.
Product roles are the useful part. Traffic products are priced to bring shoppers in and compare well with the market leader. Margin products earn the money. Image products, often premium, show what the brand stands for even if they sell less. A range made only of margin products struggles to attract first purchases; a range made only of traffic products does not pay for itself.
The common mistake is to fill every cell. More SKUs mean more minimum orders, more listings and more slow stock. A first wave usually covers fewer subcategories with clear roles, and later waves extend what the sales data supports. Retail buyers also look for a matrix that fits their shelf, not your catalogue. Review the matrix after each sales period and record why a planned SKU was dropped.
We build the matrix in the assortment stage, and the guide assortment matrix guide walks through a template. For category-specific ranges see product categories.
Related terms
SKU
A unique internal code for each sellable variant of a product, such as one size in one colour.
Good-better-best
A range structure with three tiers of quality and price, so each shopper finds a level.
Category management
Running each product category as a business unit with its own role, range, price and targets.
Planogram
A diagram showing exactly where and how each product is placed on a retail shelf.
MOQ
The smallest quantity a supplier will produce or sell in one order, per product or variant.
Frequently asked questions
What columns should an assortment matrix have?
At minimum: category, subcategory, product, variant, price tier, role in the range, channel and launch wave. Many brands add target cost, retail price and margin so the matrix doubles as a financial check.
How is an assortment matrix different from a product list?
A product list says what exists. A matrix shows how products relate by tier, role and channel, which makes gaps, overlaps and excess SKUs visible.
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