Which of the following describes the role of niche or specialty SKUs in a Pareto curve analysis?

In the context of Pareto curve analysis, niche or specialty SKUs play an important role that typically requires careful consideration and evaluation. These products often do not contribute significantly to the overall sales volume in the same way that core products do, but they can hold unique value within a category.

Reviewing niche SKUs for validation, potential addition, or discontinuation is crucial as it helps ensure that each product still aligns with the category strategy and meets customer needs. This review process allows retailers and category managers to assess whether these SKUs have a strategic purpose, whether they fill gaps in the offering, attract specific customer segments, or support brand positioning.

Ignoring these specialty items could lead to missed opportunities, either by discontinuing a SKU that still serves a loyal customer base or by neglecting to enhance a category offering with new niche products. Therefore, the evaluation of niche SKUs enables data-driven decisions that can optimize the product assortment and ultimately improve category performance.